Invesco Factor ETFs Outperform S&P 500 YTD as Momentum Draws $632M Inflows

Investors are rotating into alternative S&P 500 strategies amid the index's rebound to record highs, with eight of nine Invesco factor ETFs beating the cap-weighted benchmark year-to-date. The S&P 500 surged 12.1% from its March 30 low (recovering from a 7.3% YTD drop) to stand 3.9% higher for 2026 through April 20, fueling $632 million inflows into the S&P 500 Momentum ETF (SPMO) while the Equal Weight ETF (RSP) shed $1.675 billion. This shift underweights megacap names like the Magnificent Seven, favoring semiconductors, capital goods, and second-tier AI plays, potentially sustaining outperformance and reshaping sector flows.