Should Invesco S&P 500 Pure Growth ETF (RPG) Be on Your Investing Radar?

The Invesco S&P 500 Pure Growth ETF (RPG) was launched on 03/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $1.42 billion, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthLarge cap companies usually have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Further, growth stocks have a higher level of volatility associated with them. When you consider growth versus value, growth stocks are usually the clear winner in strong bull markets but tend to fall flat in nearly all other environments.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.38%.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.This ETF has heaviest allocation to the Information Technology sector--about 39.30% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 4.52% of total assets, followed by Arista Networks Inc (ANET) and Royal Caribbean Cruises Ltd (RCL).The top 10 holdings account for about 27.01% of total assets under management.Performance and RiskRPG 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.The ETF return is roughly 22.14% so far this year and it's up approximately 30.81% in the last one year (as of 11/05/2024). In the past 52-week period, it has traded between $29.54 and $41.25.The ETF has a beta of 1.13 and standard deviation of 23.63% for the trailing three-year period, making it a medium risk choice in the space. With about 68 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Pure Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RPG is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $140.68 billion in assets, Invesco QQQ has $294.62 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To 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