Yahoo Finance Should Invesco S&P MidCap 400 GARP ETF (GRPM) Be on Your Investing Radar?
If you're interested in broad exposure to the Mid Cap Blend segment of the US equity market, look no further than the Invesco S&P MidCap 400 GARP ETF (GRPM), a passively managed exchange traded fund launched on 12/03/2010.
The fund is sponsored by Invesco. It has amassed assets over $416.55 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 Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
Costs
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.80%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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 27.20% of the portfolio. Energy and Industrials round out the top three.
Looking at individual holdings, Shockwave Medical Inc (SWAV) accounts for about 3.78% of total assets, followed by Chord Energy Corp (CHRD) and Matador Resources Co (MTDR).
The top 10 holdings account for about 27.28% of total assets under management.
Performance and Risk
GRPM 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 has gained about 15.94% so far this year and is up about 0% in the last one year (as of 06/26/2024). In the past 52-week period, it has traded between $82.10 and $120.28.
The ETF has a beta of 1.21. With about 58 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco 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 $63.94 billion in assets, iShares Core S&P Mid-Cap ETF has $82.70 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.
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Invesco S&P MidCap 400 GARP ETF (GRPM): ETF Research Reports
Matador Resources Company (MTDR) : Free Stock Analysis Report
iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports
Vanguard Mid-Cap ETF (VO): ETF Research Reports
Chord Energy Corporation (CHRD) : Free Stock Analysis Report
