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Is Invesco S&P 500 Pure Growth ETF (RPG) a Strong ETF Right Now?
ZACKSยท2025-08-14 11:21

Core Viewpoint - The Invesco S&P 500 Pure Growth ETF (RPG) is a smart beta ETF that aims to provide broad exposure to the large-cap growth segment of the market, with a focus on stocks exhibiting strong growth characteristics [1][5]. Group 1: Smart Beta ETFs - The ETF industry has been dominated by market capitalization weighted indexes, which are designed for investors who believe in market efficiency [2]. - Smart beta ETFs, like RPG, utilize non-cap weighted strategies to select stocks based on specific fundamental characteristics, aiming to enhance risk-return performance [3]. Group 2: Fund Details - RPG is managed by Invesco and has accumulated over $1.74 billion in assets, categorizing it as an average-sized ETF in its segment [5]. - The fund seeks to match the performance of the S&P 500 Pure Growth Index, which focuses on securities with strong growth characteristics [5]. Group 3: Costs and Expenses - RPG has an annual operating expense ratio of 0.35%, which is competitive within its peer group [6]. - The fund offers a 12-month trailing dividend yield of 0.29% [6]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation in the Industrials sector, comprising about 25% of the portfolio, followed by Consumer Discretionary and Information Technology [7]. - Royal Caribbean Cruises Ltd (RCL) is the largest individual holding at approximately 2.79% of total assets, with the top 10 holdings accounting for about 21.98% of total assets [8]. Group 5: Performance Metrics - Year-to-date, RPG has returned approximately 13.77%, and it has increased about 29.84% over the last 12 months as of August 14, 2025 [9]. - The fund has a beta of 1.14 and a standard deviation of 22.01% over the trailing three-year period, indicating medium risk [10]. Group 6: Alternatives - Other ETFs in the large-cap growth space include Vanguard Growth ETF (VUG) and Invesco QQQ (QQQ), with VUG having $186.06 billion in assets and QQQ at $366.83 billion [11]. - VUG has a lower expense ratio of 0.04%, while QQQ charges 0.20% [11].