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

The Invesco S&P MidCap 400 GARP ETF (GRPM) made its debut on 12/03/2010, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Mid Cap Blend 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.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.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.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 & IndexThe fund is managed by Invesco, and has been able to amass over $543.34 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Blend. This particular fund, 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 ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Operating expenses on an annual basis are 0.35% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 1.02%.Sector Exposure and Top HoldingsWhile 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 26.50% of the portfolio. Its Energy and Industrials round out the top three.When you look at individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 2.96% of the fund's total assets, followed by Halozyme Therapeutics Inc (HALO) and Valaris Ltd (VAL).Its top 10 holdings account for approximately 26.08% of GRPM's total assets under management.Performance and RiskSo far this year, GRPM has lost about -7%, and is down about -4.83% in the last one year (as of 03/04/2025). During this past 52-week period, the fund has traded between $104.86 and $126.41.GRPM has a beta of 1.22 and standard deviation of 18.71% 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 $73.45 billion in assets, iShares Core S&P Mid-Cap ETF has $92.20 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 Valaris Limited (VAL): Free Stock Analysis Report Halozyme Therapeutics, Inc. (HALO): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports Vanguard Mid-Cap ETF (VO): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks