To this day, an age-old battle between stock market investing strategies wages: value versus momentum. Value investing is a tactic famously employed by legends like Warren Buffett. It seeks to identify stocks with depressed valuations, often due to disruptions perceived as temporary.
On the other hand, many investors deploy a momentum strategy. It relies on the idea that stocks that have risen substantially in a short period tend to continue rising. In 2025, momentum has been the clear winner among these competing ideologies. The Invesco S&P 500 Momentum ETF (NYSEARCA: SPMO) has returned 27% year-to-date. Meanwhile, the iShares S&P 500 Value ETF (NYSEARCA: IVE) has returned only around 10%.
