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Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco S&P MidCap 400 GARP ETF (GRPM - Free Report) debuted on 12/03/2010, and offers broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
GRPM is managed by Invesco, and this fund has amassed over $428.99 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Blend. GRPM, before fees and expenses, seeks to match the performance of the S&P MIDCAP 400 GARP INDEX .
The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it on par with most peer products in the space.
GRPM's 12-month trailing dividend yield is 0.80%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
GRPM's heaviest allocation is in the Consumer Discretionary sector, which is about 27% of the portfolio. Its Energy and Industrials round out the top three.
Looking at individual holdings, Shockwave Medical Inc (SWAV) accounts for about 3.78% of total assets, followed by Chord Energy Corp (CHRD - Free Report) and Matador Resources Co (MTDR - Free Report) .
The top 10 holdings account for about 27.28% of total assets under management.
Performance and Risk
The ETF has added roughly 15.62% and it's up approximately 0% so far this year and in the past one year (as of 06/27/2024), respectively. GRPM has traded between $82.10 and $120.28 during this last 52-week period.
The fund has a beta of 1.21. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 GARP ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO - Free Report) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $63.52 billion in assets, iShares Core S&P Mid-Cap ETF has $82.45 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco S&P MidCap 400 GARP ETF (GRPM - Free Report) debuted on 12/03/2010, and offers broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
GRPM is managed by Invesco, and this fund has amassed over $428.99 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Blend. GRPM, before fees and expenses, seeks to match the performance of the S&P MIDCAP 400 GARP INDEX .
The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it on par with most peer products in the space.
GRPM's 12-month trailing dividend yield is 0.80%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
GRPM's heaviest allocation is in the Consumer Discretionary sector, which is about 27% of the portfolio. Its Energy and Industrials round out the top three.
Looking at individual holdings, Shockwave Medical Inc (SWAV) accounts for about 3.78% of total assets, followed by Chord Energy Corp (CHRD - Free Report) and Matador Resources Co (MTDR - Free Report) .
The top 10 holdings account for about 27.28% of total assets under management.
Performance and Risk
The ETF has added roughly 15.62% and it's up approximately 0% so far this year and in the past one year (as of 06/27/2024), respectively. GRPM has traded between $82.10 and $120.28 during this last 52-week period.
The fund has a beta of 1.21. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 GARP ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Mid-Cap ETF (VO - Free Report) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $63.52 billion in assets, iShares Core S&P Mid-Cap ETF has $82.45 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.