Is Invesco S&P MidCap 400 Pure Growth ETF (RFG) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Mid Cap Growth category of the market, the Invesco S&P MidCap 400 Pure Growth ETF (RFG) is a smart beta exchange traded fund launched on 03/01/2006.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.Market cap weighted indexes work great for investors who believe in market efficiency. They provide 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.These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of 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. RFG has been able to amass assets over $345.66 million, making it one of the average sized ETFs in the Style Box - Mid Cap Growth. This particular fund, before fees and expenses, seeks to match the performance of the S&P MidCap 400 Pure Growth Index.The S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 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 this ETF, which makes it on par with most peer products in the space.RFG's 12-month trailing dividend yield is 0.53%.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.RFG's heaviest allocation is in the Industrials sector, which is about 26.90% of the portfolio. Its Consumer Discretionary and Information Technology round out the top three.Taking into account individual holdings, Cnx Resources Corp (CNX) accounts for about 3.38% of the fund's total assets, followed by Duolingo Inc (DUOL) and Comfort Systems Usa Inc (FIX).Its top 10 holdings account for approximately 23.09% of RFG's total assets under management.Performance and RiskYear-to-date, the Invesco S&P MidCap 400 Pure Growth ETF has added about 27.55% so far, and is up about 34.24% over the last 12 months (as of 12/09/2024). RFG has traded between $39.65 and $53.39 in this past 52-week period.The ETF has a beta of 1.15 and standard deviation of 23.70% for the trailing three-year period, making it a medium risk choice in the space. With about 90 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap 400 Pure Growth ETF is an excellent option for investors seeking to outperform the Style Box - Mid Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.Vanguard Mid-Cap Growth ETF (VOT) tracks CRSP U.S. Mid Cap Growth Index and the iShares Russell Mid-Cap Growth ETF (IWP) tracks Russell MidCap Growth Index. Vanguard Mid-Cap Growth ETF has $16.29 billion in assets, iShares Russell Mid-Cap Growth ETF has $18.76 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.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 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 MidCap 400 Pure Growth ETF (RFG): ETF Research Reports CNX Resources Corporation. (CNX): Free Stock Analysis Report Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report iShares Russell Mid-Cap Growth ETF (IWP): ETF Research Reports Vanguard Mid-Cap Growth ETF (VOT): ETF Research Reports Duolingo, Inc. (DUOL): 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