stocks on wild rides and mega-cap tech names dominate headlines, some investors look for a…]## Everyone Missed Morningstar's ETF Quietly Beating the S&P 500 by 30%[Michael Williams | Feb 12, 2026 at 11:32 AM EST Most investors treat broad market funds like a set-it-and-forget-it decision. But what if your core equity position could be engineered…]## Momentum Strategy Delivered 506% Returns but Now There Are Warning Signs[Michael Williams | Feb 17, 2026 at 10:05 PM EST Mid-cap stocks occupy an overlooked spa ...

Core Viewpoint - The Invesco S&P 500 Momentum ETF (SPMO) is highlighted as a strong investment option due to its momentum strategy that consistently outperforms the S&P 500 (SPY) without heavy reliance on the top seven stocks in the index [1]. Group 1 - The momentum strategy of SPMO is noted for its ability to outperform the S&P 500 [1]. - The investment approach is characterized as long-term, focusing on macro ideas through low-risk ETFs and CEFs [1]. - The fund is managed by a team with nearly ten years of trading experience in stocks and currencies, indicating a solid background in investment management [1].

Core Insights - Market concentration in the U.S. has reached unprecedented levels, with the three largest stocks accounting for over 20% of the S&P 500's total value, and the top 20 stocks representing approximately half of the index [3][5] Group 1: Fund Overview - The iShares Top 20 U.S. Stocks ETF (TOPT) tracks the S&P 500 Top 20 Select Index, focusing on the 20 largest U.S. companies by market capitalization, with a quarterly rebalancing strategy [4][9] - TOPT's top three holdings—NVIDIA, Apple, and Microsoft—constitute 42% of the portfolio, emphasizing a concentrated growth exposure strategy [5][9] - The fund has a competitive expense ratio of 0.20% and has attracted $441 million in assets under management since its launch in October 2024 [6] Group 2: Performance and Appeal - Since its inception in late October 2024, TOPT has delivered a return of approximately 24%, indicating strong performance despite launching near market highs [7] - The fund's strategy appeals to investors seeking slightly more diversification than the Magnificent Seven while maintaining significant exposure to mega-cap growth stocks [8]

Core Viewpoint - The Federal Reserve's upcoming FOMC meeting is highly contentious, with potential market implications depending on the outcome and tone of the meeting [1] Market Expectations - A month ago, futures indicated a 50% chance of a rate cut, leading to significant market volatility, with indexes falling about 6% from their highs, while speculative areas faced more severe declines [2] - Currently, the probability of a rate cut is approximately 90%, but markets anticipate this to be the last cut until at least June of the following year, raising concerns about potential market reactions [3] Federal Reserve Communication - Chair Jerome Powell has maintained a conservative communication style, which may continue as he emphasizes that policy rates are near appropriate levels and that the committee will remain data-dependent [4] - If Powell adopts a hawkish tone, it could lead to a bearish market response, indicating less liquidity and potentially cooling the recent stock market enthusiasm [5] Sector Performance - Excluding technology, healthcare (XLV) and energy (XLE) sector ETFs have been the strongest performers over the past three months, suggesting a positive momentum signal [8] - Momentum strategies have historically generated excess returns, and sector rotation is seen as a reliable method to capture this edge, making healthcare and energy favorable sectors at this stage [9] Defensive Positioning - If the Fed delivers a rate cut but pairs it with a restrictive message, the market may need time to adjust, leading to a potential consolidation phase where investors may seek sectors with steadier earnings and lower volatility [10] - Healthcare and energy sectors are positioned well to absorb market rotation, as they have begun to outperform and remain underowned after periods of neglect [11] Future Market Dynamics - The initial market reaction post-FOMC meeting may be sharp, but the emerging leadership in sectors like healthcare and energy could indicate a shift away from the tech-driven rally that characterized much of the year [12]

Core Insights - The article discusses the Vanguard U.S. Momentum Factor ETF (BATS: VFMO), which employs an active momentum strategy aimed at outperforming the Russell 3000 index [1]. Group 1: Investment Strategy - The Vanguard U.S. Momentum Factor ETF is designed for investors seeking to beat market indexes through momentum strategies [1]. Group 2: Performance Benchmark - The ETF's performance is benchmarked against the Russell 3000, indicating its focus on large-cap U.S. equities [1].