Should Invesco S&P MidCap 400 GARP ETF (GRPM) Be on Your Investing Radar?

Core Insights - The Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed ETF launched on December 3, 2010, with assets exceeding $471.95 million, targeting the Mid Cap Blend segment of the US equity market [1] - Mid cap companies, with market capitalizations between $2 billion and $10 billion, provide a balance of lower risk and higher growth opportunities compared to small and large companies [2] - The ETF has an annual operating expense ratio of 0.35% and a 12-month trailing dividend yield of 0.87%, which is competitive within its peer group [3] Sector Exposure and Holdings - The ETF has a significant allocation of approximately 26.30% to the Consumer Discretionary sector, followed by Energy and Industrials [4] - Celsius Holdings Inc (CELH) represents about 4.67% of total assets, with the top 10 holdings accounting for around 27.7% of total assets under management [5] Performance Metrics - GRPM aims to match the performance of the S&P MIDCAP 400 GARP INDEX, which tracks companies with consistent growth and strong financials [6] - The ETF has increased by approximately 1.46% year-to-date and is up about 0.48% over the past year, with a trading range of $90.38 to $126.41 in the last 52 weeks [6] - The ETF has a beta of 1.09 and a standard deviation of 21.77% over the trailing three-year period, indicating effective diversification of company-specific risk [7] Alternatives and Market Position - GRPM holds a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Mid Cap Blend market segment [8] - Other comparable ETFs include the Vanguard Mid-Cap ETF (VO) with $84.90 billion in assets and an expense ratio of 0.04%, and the iShares Core S&P Mid-Cap ETF (IJH) with $98.18 billion in assets and an expense ratio of 0.05% [9] Investment Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10]