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

Making its debut on 03/01/2006, smart beta exchange traded fund Invesco S&P 500 Pure Growth ETF (RPG) provides investors broad exposure to the Style Box - Large Cap Growth category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.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.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.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.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is managed by Invesco. RPG has been able to amass assets over $1.63 billion, making it one of the average sized ETFs in the Style Box - Large Cap Growth. RPG seeks to match the performance of the S&P 500 Pure Growth Index before fees and expenses.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 ExpensesInvestors 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.RPG's 12-month trailing dividend yield is 0.21%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.For RPG, it has heaviest allocation in the Industrials sector --about 24.50% of the portfolio --while Consumer Discretionary and Information Technology round out the top three.When you look at individual holdings, United Airlines Holdings Inc (UAL) accounts for about 2.55% of the fund's total assets, followed by Norwegian Cruise Line Holdings Ltd (NCLH) and Vistra Corp (VST).Its top 10 holdings account for approximately 21.9% of RPG's total assets under management.Performance and RiskThe ETF has gained about 5.91% and is up about 32.74% so far this year and in the past one year (as of 02/03/2025), respectively. RPG has traded between $33.42 and $44.56 during this last 52-week period.The ETF has a beta of 1.14 and standard deviation of 23.01% for the trailing three-year period, making it a medium risk choice in the space. With about 89 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 $159.54 billion in assets, Invesco QQQ has $331.15 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 United Airlines Holdings Inc (UAL): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report Vanguard Growth ETF (VUG): ETF Research Reports Vistra Corp. (VST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks