Should Invesco S&P MidCap 400 GARP ETF (GRPM) Be on Your Investing Radar?

Launched on 12/03/2010, the Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $565.79 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.Why Mid Cap BlendMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 0.96%.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.This ETF has heaviest allocation to the Consumer Discretionary sector--about 26.40% of the portfolio. Industrials and Energy round out the top three.Looking at individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 3.06% of total assets, followed by Roivant Sciences Ltd (ROIV) and Aaon Inc (AAON).The top 10 holdings account for about 25.04% of total assets under management.Performance and RiskGRPM seeks to match the performance of the S&P MIDCAP 400 GARP INDEX before fees and expenses. The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.The ETF return is roughly 15.12% so far this year and it's up approximately 15.12% in the last one year (as of 12/31/2024). In the past 52-week period, it has traded between $95.44 and $126.41.The ETF has a beta of 1.20 and standard deviation of 19.03% for the trailing three-year period. With about 60 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap 400 GARP ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GRPM is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $71.64 billion in assets, iShares Core S&P Mid-Cap ETF has $94.78 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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 MidCap 400 GARP ETF (GRPM): ETF Research Reports AAON, Inc. (AAON): Free Stock Analysis Report iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports 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