Invesco S&P 500 GARP ETF (SPGP)

ETF Invesco S&P 500 GARP ETF (QQQM)

Profile:

QQQM is an exchange-traded fund (ETF) that tracks the S&P 500 GARP Index. This index focuses on growth at a reasonable price (GARP) stocks within the S&P 500, aiming for a balance of growth potential and value. The fund invests in large-cap U.S. equities across various sectors.

Objective:

The primary investment goal of QQQM is to provide long-term capital appreciation by tracking the performance of the S&P 500 GARP Index.

Issuer:

Invesco Ltd. (IVZ)

Reputation and Reliability:

Invesco is a global investment management company with over $1.4 trillion in assets under management (AUM) as of June 30, 2023. The company has a strong reputation for its expertise in various asset classes and investment strategies.

Management:

Invesco has a dedicated team of portfolio managers and analysts with extensive experience in managing index-tracking ETFs.

Market Share:

QQQM has a market share of approximately 0.5% in the GARP ETF category.

Total Net Assets:

As of November 10, 2023, QQQM has total net assets of approximately $1.2 billion.

Moat:

The ETF's competitive advantages include:

• Exposure to GARP stocks: QQQM offers investors access to a diversified portfolio of GARP stocks within the S&P 500.
• Low expense ratio: The ETF has a low expense ratio of 0.15%.
• Liquidity: QQQM has a high average trading volume, ensuring liquidity for investors.

Financial Performance:

Since inception (March 19, 2021), QQQM has delivered a total return of 26.39%. Compared to the S&P 500, which returned 21.81% during the same period, QQQM has outperformed the benchmark.

Growth Trajectory:

The GARP investment style has historically exhibited strong growth potential. The increasing demand for value-oriented growth stocks could further propel QQQM's growth trajectory.

Liquidity:

QQQM has an average daily trading volume of over 200,000 shares, indicating good liquidity. The bid-ask spread is typically tight, minimizing trading costs.

Market Dynamics:

Factors affecting QQQM's market environment include:

• Economic growth: A strong economy can positively influence GARP stocks.
• Interest rates: Rising interest rates can impact growth stocks, potentially affecting QQQM's performance.
• Sector performance: Performance of specific sectors within the S&P 500 can impact QQQM.

Competitors:

• iShares S&P 500 Growth ETF (IVW) - Market share: 20%
• Vanguard S&P 500 Growth ETF (VOOG) - Market share: 15%
• SPDR S&P 500 Growth ETF (SPYG) - Market share: 10%

Expense Ratio:

QQQM has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Strategy: QQQM tracks the S&P 500 GARP Index.
• Composition: The ETF invests in the same constituents as the index, primarily large-cap U.S. stocks across various sectors.

Key Points:

• Invests in GARP stocks within the S&P 500.
• Aims for long-term capital appreciation.
• Low expense ratio.
• High liquidity.

Risks:

• Market risk: QQQM is subject to market fluctuations and may experience losses due to market downturns.
• Growth stock risk: GARP stocks are susceptible to higher volatility compared to value stocks.
• Sector concentration: The ETF's concentration in specific sectors could increase its vulnerability to sector-specific risks.

Who Should Consider Investing:

QQQM is suitable for investors seeking long-term capital appreciation through exposure to GARP stocks within the S&P 500. Investors should have a moderate to high-risk tolerance and a long-term investment horizon.

Fundamental Rating Based on AI - 7.5/10:

QQQM receives a rating of 7.5 out of 10 based on an AI analysis. This rating considers factors like financial performance, expense ratios, liquidity, and market dynamics.

Justification:

QQQM demonstrates strong financial performance, outperforming the S&P 500 since its inception. The ETF has a low expense ratio and high liquidity. However, the fund's relatively small market share and sector concentration pose potential risks.

Resources and Disclaimers:

• Invesco S&P 500 GARP ETF (QQQM): https://us.invesco.com/products/etfs/qqqm
• S&P 500 GARP Index: https://www.spglobal.com/spdji/en/index-family/strategy/garp-indices/

Disclaimer:

This information is for informational purposes only and should not be considered investment advice. Investors should conduct further research and due diligence before making any investment decisions.