Searching for broad publicity to the Giant Cap Development phase of the US fairness market? You need to think about the Invesco S&P 500 Pure Development ETF (RPG), a passively managed trade traded fund launched on 03/01/2006.
The fund is sponsored by Invesco. It has amassed property over $1.54 billion, making it one of many common sized ETFs trying to match the Giant Cap Development phase of the US fairness market.
Why Giant Cap Development
Firms that discover themselves within the giant cap class sometimes have a market capitalization above $10 billion. General, they’re often a steady choice, with much less danger and extra sure-fire money flows than mid and small cap corporations.
Whereas development shares do boast greater than common gross sales and earnings development charges, and they’re anticipated to develop sooner than the broader market, buyers ought to observe these sorts of shares have greater valuations. Moreover, development shares have a higher stage of danger related to them. In comparison with worth shares, development shares are a safer wager in a robust bull market, however do not carry out as strongly in nearly all different monetary environments.
Prices
Expense ratios are an essential issue within the return of an ETF and in the long run, cheaper funds can considerably outperform their dearer counterparts, different issues remaining the identical.
Annual working bills for this ETF are 0.35%, placing it on par with most peer merchandise within the house.
It has a 12-month trailing dividend yield of 0.21%.
Sector Publicity and Prime Holdings
It is very important delve into an ETF’s holdings earlier than investing regardless of the various upsides to those sorts of funds like diversified publicity, which minimizes single inventory danger. And, most ETFs are very clear merchandise that disclose their holdings every day.
This ETF has heaviest allocation to the Info Know-how sector–about 38% of the portfolio. Client Discretionary and Industrials spherical out the highest three.
particular person holdings, Nvidia Corp (NVDA) accounts for about 4.77% of whole property, adopted by Royal Caribbean Cruises Ltd (RCL) and Palantir Applied sciences Inc (PLTR).
The highest 10 holdings account for about 29.49% of whole property underneath administration.
Efficiency and Danger
RPG seeks to match the efficiency of the S&P 500 Pure Development Index earlier than charges and bills. The S&P 500 Pure Development Index measures the efficiency of securities that exhibit robust development traits within the S&P 500 Index.
The ETF has added about 1.89% thus far this yr and is up roughly 35.34% within the final one yr (as of 01/06/2025). Up to now 52-week interval, it has traded between $31.69 and $44.07.
The ETF has a beta of 1.14 and normal deviation of 23.41% for the trailing three-year interval, making it a medium danger selection within the house. With about 68 holdings, it successfully diversifies company-specific danger.
Options
Invesco S&P 500 Pure Development ETF holds a Zacks ETF Rank of two (Purchase), which is predicated on anticipated asset class return, expense ratio, and momentum, amongst different components. Due to this, RPG is a good choice for buyers searching for publicity to the Model Field – Giant Cap Development phase of the market. There are different extra ETFs within the house that buyers might think about as effectively.
The Vanguard Development ETF (VUG) and the Invesco QQQ (QQQ) observe an analogous index. Whereas Vanguard Development ETF has $155.71 billion in property, Invesco QQQ has $323.43 billion. VUG has an expense ratio of 0.04% and QQQ expenses 0.20%.
Backside-Line
An more and more widespread choice amongst retail and institutional buyers, passively managed ETFs supply low prices, transparency, flexibility, and tax effectivity; they’re additionally glorious automobiles for long run buyers.
To study extra about this product and different ETFs, display for merchandise that match your funding aims and skim articles on newest developments within the ETF investing universe, please go to Zacks ETF Center.
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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
Vanguard Growth ETF (VUG): ETF Research Reports
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
