Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?

The Invesco S&P MidCap 400 GARP ETF (GRPM) was launched on 12/03/2010, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Blend category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexThe fund is managed by Invesco, and has been able to amass over $544.99 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 ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Operating expenses on an annual basis are 0.35% for GRPM, making it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 0.92%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.For GRPM, it has heaviest allocation in the Consumer Discretionary sector --about 26.10% of the portfolio --while Industrials and Energy round out the top three.Taking into account individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 3.95% of the fund's total assets, followed by Roivant Sciences Ltd (ROIV) and Kinsale Capital Group Inc (KNSL).GRPM's top 10 holdings account for about 24.93% of its total assets under management.Performance and RiskSo far this year, GRPM return is roughly 17.34%, and it's up approximately 38.76% in the last one year (as of 11/01/2024). During this past 52-week period, the fund has traded between $84.83 and $123.17.The fund has a beta of 1.19 and standard deviation of 18.93% for the trailing three-year period. With about 60 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Mid-Cap ETF has $69.84 billion in assets, iShares Core S&P Mid-Cap ETF has $91.59 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 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 MidCap 400 GARP ETF (GRPM): ETF Research Reports iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Kinsale Capital Group, Inc. (KNSL): Free Stock Analysis Report Vanguard Mid-Cap ETF (VO): ETF Research Reports Roivant Sciences Ltd. (ROIV): 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