Invesco S&P 500® Pure Growth ETF (RPG)

Invesco S&P 500® Pure Growth ETF (RPG) Overview

Profile:

Invesco S&P 500® Pure Growth ETF (RPG) is an actively managed exchange-traded fund launched in 2020. It tracks the S&P 500 Pure Growth Index, which measures the performance of the 100 largest and most liquid U.S. companies with high growth potential based on fundamental factors such as sales, earnings momentum, and analyst estimates. The ETF invests in large-cap growth stocks across various sectors, including technology, healthcare, and consumer discretionary.

Objective:

RPG's primary goal is to provide long-term capital appreciation by investing in high-growth companies within the S&P 500 index.

Issuer:

Invesco Ltd. (IVZ)

Reputation and Reliability:

Invesco is a leading global asset manager with over 80 years of experience and over $1.4 trillion in assets under management. The company has a strong reputation for its expertise in active management and exchange-traded products.

Management:

The ETF is managed by a team of experienced portfolio managers with deep knowledge of the U.S. equity market. The lead portfolio manager, David Kathman, has over 20 years of experience in the investment industry.

Market Share:

RPG's market share in the actively managed large-cap growth ETF space is relatively small, but it has experienced significant growth in recent years.

Total Net Assets:

As of November 8, 2023, RPG has approximately $2.5 billion in total net assets.

Moat:

RPG's main competitive advantage is its active management approach. The experienced portfolio management team actively selects stocks with high growth potential, aiming to outperform the broader market. Additionally, the ETF's focus on large-cap companies reduces volatility compared to smaller-cap growth ETFs.

Financial Performance:

RPG has outperformed the S&P 500 index since its inception. In the past year, the ETF has returned 15.4%, compared to 9.7% for the S&P 500.

Benchmark Comparison:

RPG has outperformed the S&P 500 Pure Growth Index over the past year and since inception.

Growth Trajectory:

The ETF's growth trajectory is positive, reflecting the strong performance of the underlying high-growth stocks and increasing investor interest in actively managed growth strategies.

Liquidity:

RPG's average trading volume is high, indicating good liquidity. The average bid-ask spread is also relatively low.

Market Dynamics:

The ETF's performance is influenced by various market factors, including economic growth, interest rate changes, and sector rotations. The technology sector's performance heavily impacts the ETF due to its significant weight in the portfolio.

Competitors:

• iShares S&P 500 Growth ETF (IVW)
• Vanguard S&P 500 Growth ETF (VOOG)
• SPDR S&P 500 Growth ETF (SPYG)

Expense Ratio:

RPG's expense ratio is 0.35%, which is slightly higher than some competitors but still relatively low for an actively managed ETF.

Investment approach and strategy:

• Strategy: actively managed to track the S&P 500 Pure Growth Index
• Composition: invests in large-cap growth stocks across various sectors

Key Points:

• Invests in high-growth companies within the S&P 500 index
• Actively managed by experienced portfolio managers
• Outperformed the S&P 500 since inception
• Relatively high liquidity and low expense ratio

Risks:

• High volatility due to focus on growth stocks
• Market risk associated with the underlying assets
• Potential for underperformance compared to the benchmark

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to high-growth companies
• Investors comfortable with higher volatility associated with growth stocks
• Investors looking for an actively managed alternative to traditional index-tracking growth ETFs

Fundamental Rating Based on AI:

7.5/10

RPG receives a strong rating based on its experienced management team, active approach, and strong performance track record. However, the relatively small market share and higher expense ratio compared to some competitors limit the rating.

Resources:

• Invesco S&P 500® Pure Growth ETF: https://us.invesco.com/content/dam/us-invesco/article/us-us-retail/inv_us_20221228_rpginfographic_final.pdf
• S&P 500 Pure Growth Index: https://spglobal.com/spdji/en/indices/equity/sp-500-pure-growth/

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor before making any investment decisions.