The Invesco S&P MidCap 400 GARP ETF (GRPM) is a passively managed exchange-traded fund that aims to provide broad exposure to the Mid Cap Blend segment of the US equity market. It was launched on December 3, 2010, and is sponsored by Invesco, with assets under management exceeding $551.78 million1. The fund seeks to track the performance of the S&P MIDCAP 400 GARP INDEX, which focuses on companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power21.
- Investment Strategy: GRPM's investment strategy is based on the GARP (Growth at a Reasonable Price) approach, which involves selecting mid-cap stocks that balance growth potential with reasonable valuations. These stocks are identified using five key criteria: three-year earnings per share growth, three-year sales per share growth, financial leverage ratio, return on equity, and earnings to price ratio4.
- Sector Exposure: The ETF has a significant allocation to the Consumer Discretionary sector, which accounts for about 26.20% of the portfolio. Other notable sectors include Industrials and Energy. The top 10 holdings account for approximately 24.93% of total assets under management1.
- Performance and Risk: GRPM's performance is influenced by the performance of the S&P MIDCAP 400 GARP INDEX. The fund's sector allocation and low P/E ratio offer a unique mix, but its Consumer Discretionary tilt could be risky in economic downturns. The ETF's volatility and growth rate have been moderate, with a 12-month trailing dividend yield of 0.90%14.
- Expense Ratio: The annual operating expenses for GRPM are 0.35%, which is competitive with other peer products in the space1. This relatively low expense ratio can contribute to the fund's overall return.
- Recent Activity: There has been significant buying interest in GRPM from various institutional investors, indicating growing interest in the fund56.
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