Launched on 03/01/2006, the Invesco S&P 500 Pure Growth ETF (RPG) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Growth category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $1.92 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Growth. RPG, before fees and expenses, seeks to match the performance of the S&P 500 Pure Growth Index.
The S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.35%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 0.16%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 43.3% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Industrials and Consumer Discretionary round out the top three.
Taking into account individual holdings, Sandisk Corp (SNDK) accounts for about 6.63% of the fund's total assets, followed by Micron Technology Inc (MU) and Comfort Systems Usa Inc (FIX).
Its top 10 holdings account for approximately 29.69% of RPG's total assets under management.
Performance and Risk
The ETF has added about 22.61% and it's up approximately 21.96% so far this year and in the past one year (as of 09/01/2026), respectively. RPG has traded between $43.66 and $63.85 during this last 52-week period.
RPG has a beta of 1.21 and standard deviation of 22.99% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 69 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco S&P 500 Pure Growth ETF is an excellent option for investors seeking to outperform the Style Box - Large Cap Growth segment of the market. There are other ETFs in the space which investors could consider as well.
Vanguard Morningstar Growth ETF (VUG) tracks CRSP U.S. Large Cap Growth Index and the Invesco QQQ (QQQ) tracks NASDAQ-100 Index. Vanguard Morningstar Growth ETF has $227.08 billion in assets, Invesco QQQ has $486.11 billion. VUG has an expense ratio of 0.03% and QQQ changes 0.18%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Growth
Bottom Line
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 500 Pure Growth ETF (RPG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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