A strong management team and sound investment process underpin SPDR® S&P 1500 Momentum Tilt ETF's Morningstar Medalist Rating of Gold. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy's effective investment approach earns an Above Average Process Pillar rating.  High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And momentum exposure is rooted in holding stocks currently on a winning streak. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

NVIDIA

Apple

Amazon

Alphabet

Eli Lilly

Broadcom

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. SPDR® S&P 1500 Momentum Tilt ETF earns an Above Average Process Pillar rating. 

The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also bolsters the rating. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the managers have shown skill in their allocation of risk. Lastly, the process is limited by the parent firm's five-year retention rate of 74%, which suggests it could do more to retain its portfolio managers.

 This strategy leans toward smaller, deeper value companies than its average peer in the Large Growth Morningstar Category. Analyzing additional factors, this strategy has continually displayed high-yield exposure compared with Morningstar Category peers during recent years, holding more companies returning cash to shareholders via dividends or buybacks. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In recent months, the strategy was more exposed to the Yield factor compared with its Morningstar Category peers as well. This strategy has also demonstrated more exposure to high-momentum stocks over peers in recent years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. This strategy also has tilted toward low-quality stocks, companies with higher financial leverage and lower profitability over these years. Lacking this ballast, the fund's prospects could rest on its ability to surpass peers during economic booms. In this month, however, the strategy had more exposure to the Quality factor than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio has allocations in its top two sectors, industrials and technology, that are similar to the category. The sectors with low exposure compared to category peers are healthcare and consumer cyclical, with healthcare underweighting the average portfolio by 4.1 percentage points of assets and consumer cyclical similar to the average. The portfolio is composed of 1,462 holdings and its assets are more dispersed than peers in the category. In particular, 45.7% of the fund’s assets are concentrated in the top 10 fund holdings, as opposed to the category average's 54.8%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 104% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

SPDR® S&P 1500 Momentum Tilt ETF's strong team drives the strategy's Above Average People Pillar rating. There are two managers listed on the fund: Karl Schneider, John Law. Experience on the team is abundant, with 17 years of average portfolio management experience. Together, they manage a total of 10 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

State Street Global Advisors is under new leadership but continues to move along the positive trajectory established by former leaders. SSGA maintains its Above Average Parent Pillar rating.
Cyrus Taraporevala, who oversaw much of SSGA’s recent transformation, retired from the CEO position in December 2022 and passed the baton to his successor, Yie-Hsin Hung. She inherited a business that’s become more disciplined with its fund lineup. Fees have come down, while product development remains focused on fixed-income and sustainability funds, and many of SSGA’s launches have echoed that intention.
The seeds that SSGA planted over the past several years have been bearing fruit. It built out a low-cost series of portfolio building-block ETFs in the U.S. bearing the “SPDR Portfolio” branding. SSGA launched these later than its industry rivals, so they aren’t as large. But they’re competitive, with solid management and low fees, which helped them consistently take in new money over the past several years.
SSGA continued to overhaul its ETF business in Europe with most of its recent fixed-income and sustainability fund launches. Many of these funds track indexes and charge relatively low fees. With operations in the U.S. and Europe standing on a firm foundation, SSGA will put more focus on its Asia-Pacific business—the smallest regional segment of its business.

Parent

SPDR S&P 1500 Momentum Tilt ETF

MMTM tracks a tiered index that weights securities from the S&P 1500 according to a combination of their market capitalization and their price momentum over the previous 12 months.

Qraft AI-Enhanced US Large Cap Momentum ETF

JPMorgan US Momentum Factor ETF

iShares MSCI USA Momentum Factor ETF

Invesco S&P 500 Momentum ETF

The rally has been broad-based this year, with momentum investing emerging as a big winner.

Momentum ETFs Hit New 52-Week Highs

VanEck Vectors Social Sentiment ETF

Invesco DWA Consumer Cyclicals Momentum ETF

Invesco DWA Technology Momentum ETF

Alpha Architect US Quantitative Momentum ETF

Wall Street appears ready to rally, with the S&P 500 notching its eight straight days of gains on Wednesday and the Nasdaq continuing its own streak for nine successive sessions.

Wall Street Hits 2-Year Best Mark: Momentum ETFs to Play

This momentum ETF hits a new 52-week high. Are more gains in store for this ETF?

News for SPDR S&P 1500 Momentum Tilt ETF ETF (MMTM)