Is Invesco S&P 500 Pure Growth ETF (RPG) a Strong ETF Right Now?

Launched on 03/01/2006, the Invesco S&P 500 Pure Growth ETF (RPG) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexBecause the fund has amassed over $1.55 billion, this makes it one of the average sized ETFs in the Style Box - Large Cap Growth. RPG is managed by Invesco. RPG, before fees and expenses, seeks to match the performance of the S&P 500 Pure Growth Index.The S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index.Cost & Other ExpensesExpense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.Operating expenses on an annual basis are 0.35% for RPG, making it on par with most peer products in the space.RPG's 12-month trailing dividend yield is 0.34%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Information Technology sector - about 38.40% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 4.97% of total assets, followed by Royal Caribbean Cruises Ltd (RCL) and Arista Networks Inc (ANET).RPG's top 10 holdings account for about 27.83% of its total assets under management.Performance and RiskSo far this year, RPG has gained about 33.74%, and is up roughly 41.09% in the last one year (as of 12/02/2024). During this past 52-week period, the fund has traded between $30.58 and $43.13.The ETF has a beta of 1.13 and standard deviation of 23.65% for the trailing three-year period, making it a medium risk choice in the space. With about 67 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Pure Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.Vanguard Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Growth ETF has $151.63 billion in assets, Invesco QQQ has $314.15 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.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 - Large Cap Growth.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Pure Growth ETF (RPG): ETF Research Reports Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Arista Networks, Inc. (ANET): Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks