USCA vs XMMO

USCAAXtrackers MSCI USA Climate Action Equity ETF

XMMOCInvesco S&P MidCap Momentum ETF

In short

USCA The largest US ETF debut on record when it launched in 2023, seeded by a Finnish pension fund. It owns roughly 400 US large- and mid-caps, keeping only the top half of each sector on MSCI's climate-transition scoring, for 0.07% a year.

XMMO Momentum, aimed at the middle of the market. Since 2005 XMMO has screened the S&P MidCap 400 for the strongest price trends and keeps roughly 80 of them, refreshing the list twice a year. A concentrated bet on what's already working.

Stated mandate

USCA The fund seeks to track the MSCI USA Climate Action Index before fees and expenses through a passive indexing strategy. The index selects U.S. large- and mid-capitalization companies assessed as leading sector peers in climate-transition positioning and actions.

XMMO The Fund is based on the S&P Midcap 400 Momentum Index.

Why people hold it

• USCA Costs 0.07% a year against a typical screened US equity peer near 0.28%, and undercuts bigger ESG names like SUSA at 0.25%.
• No blanket sector bans: the index keeps the top 50% of companies in each GICS sector, so energy and industrials stay in, represented by their climate-transition leaders.dws.commsci.com
• Rules do the picking. MSCI's climate metrics, ESG ratings and controversy screens set the roster; no manager discretion, no stock-by-stock calls.dws.com
• A multi-billion-dollar fund with an institutional anchor investor from day one, and it pays quarterly.businesswire.com

• XMMO Launched in 2005, it is one of the longest-running momentum ETFs listed in the US, and it runs the factor inside mid caps instead of the usual mega-cap universe.
• The rule is spelled out: S&P ranks momentum over 12 months while skipping the most recent one (dodging short-term reversals), adjusts the score for volatility, and rebalances in March and September.spglobal.com
• 0.34% a year puts it right at the going rate for a factor fund in its peer group, and it is a multi-billion-dollar fund with steady enough volume for everyday trading.
• It tracks its stated index closely and has held the same mandate for two decades, which lands it in the upper half of its factor cohort on implementation.

Worth knowing

• USCA Half of each sector is screened out, so results can drift from a plain MSCI USA index fund in either direction.dws.com
• Market-cap weighted and filed as non-diversified, so America's largest companies carry heavy weight at the top.dws.com
• Moderately traded next to the giants of US equity, so spreads can be a bigger part of the cost of getting in and out.

• XMMO About 80 names out of a 400-stock parent index. That concentration cuts both ways, and sector weights can drift wherever momentum happens to be crowding.
• Momentum by design buys what has already climbed, and the list only resets twice a year, so the portfolio can sit with a fading trend between rebalances.spglobal.com
• Mid caps plus a momentum tilt is a bumpier ride than broad-market exposure, and cheaper factor options exist (SIZE at 0.15%, MGV at 0.05%).

Full USCA profile⁠

Full XMMO profile⁠