Momentum stocks led S&P factors with 7.5% gain in June, outpacing growth amid tech sell-off.

In June, the S&P 500 Momentum Index surged 7.5%, outperforming all other S&P factor-based equity exposures and maintaining a strong 44.4% gain for Q2. This momentum trend also led year-to-date with a 36% gain, driven by investor preference for price velocity over traditional growth stocks, especially amid a global tech sell-off. Quality and dividend factors provided defensive strength, while growth was the only factor to decline in June. Small-cap stocks also performed well, suggesting a broadening market recovery beyond top-heavy tech names. Investors may consider momentum-focused ETFs like Invesco's SPMO to capture this trend while hedging risks with quality and dividend strategies.