Invesco S&P 500® Pure Growth ETF earns a Morningstar Medalist Rating of Negative with strength in areas such as People offset by weaker spots such as Process. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy gets a Low Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

NVIDIA

Royal Caribbean Cruises

Uber

Arista Networks

Booking Hlds

Builders FirstSource

Monolithic Power Systems

Targa Resources

KLA-Tencor

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Invesco S&P 500® Pure Growth ETF earns a Low Process Pillar rating. 

The main driver of the rating is the fund's unimpressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. 

 This strategy targets smaller plays than its peers’ average in the Large Growth Morningstar Category. But in terms of style (value/growth) exposure, it is similar. Analyzing additional factors, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy also has had an overweight bias to the volatility factor over these years, meaning it has owned companies that have a higher historical standard deviation of returns. This orientation tends to pay off most prominently when markets are hot. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. High-yield stocks tend to be associated with more mature, profitable businesses that can grow as well as provide a stream of income. Such stocks could suffer, however, if setbacks force them to cut their dividends. In this month, the strategy also had more exposure to the Yield factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and energy relative to the category average by 11.9 and 5.3 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and financial services, underweight the average by 10.3 and 6.6 percentage points of assets, respectively. The portfolio is composed of 59 holdings and its assets are more dispersed than peers in the category. In particular, 27.1% of the strategy's assets are concentrated in the top 10 fund holdings, as opposed to the category’s 54.8% average. And finally, in terms of portfolio turnover, on a year-over-year basis, 78% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Process

Invesco’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are four managers listed on the fund: Michael Jeanette, Peter Hubbard, Tony Seisser, Pratik Doshi. Experience on the team is abundant, with 12 years of average portfolio management experience. Together, they manage a total of 144 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate. This group has had relatively low management turnover, providing a stable environment and continuity for the strategies. 

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco S&P 500 Pure Growth ETF

RPG tracks an index of primarily large- and mid-caps with strong growth characteristics. The index selects companies from the S&P 500 Index, based on three growth factors.

First Trust Large Cap Growth AlphaDEX Fund

Invesco Dynamic Large Cap Growth ETF

Invesco NASDAQ Next Gen 100 ETF

The Fed's decision to maintain interest rates and its forecast for rate cuts reflects a cautious approach toward managing inflation while considering economic growth.

Growth ETFs to Play as Fed Sticks to 3 Rate Cuts Projections

Looking for broad exposure to the Large Cap Growth segment of the US equity market? You should consider the Invesco S&P 500 Pure Growth ETF (RPG), a passively managed exchange traded fund launched on 03/01/2006.

Should Invesco S&P 500 Pure Growth ETF (RPG) Be on Your Investing Radar?

A smart beta exchange traded fund, the Invesco S&P 500 Pure Growth ETF (RPG) debuted on 03/01/2006, and offers broad exposure to the Style Box - Large Cap Growth category of the market.

Is Invesco S&P 500 Pure Growth ETF (RPG) a Strong ETF Right Now?

For investors seeking momentum, Invesco S&P 500 Pure Growth ETF RPG is probably on the radar. The fund just hit a 52-week high and is up 14% from its 52-week low of $28.34 per share.

Large-Cap Growth ETF (RPG) Hits New 52-Week High

FstTr ET AlDex Shs Multi Cap Growth AlphaDEX Fund

iShares S&P Mid-Cap 400 Growth ETF

SPDR S&P 400 Mid Cap Growth ETF

Invesco Bloomberg Pricing Power ETF

The Consumer Price Index showed prices rose 0% over last month and 3.2% over the prior year in October. Core inflation marked its slowest pace in over two years.

Slowest Inflation Since Sep'21 to Boost Growth ETFs in Near Term

First Trust Growth Strength ETF

Invesco S&P 500 GARP ETF

Wall Street recorded a rally to close out last week as bets that the Fed is done raising rates strengthened on softer jobs data.

Bet on 5 Low P/E Top-Ranked Growth ETFs

Avantis U.S. Small Cap Value ETF

YieldMax COIN Option Income Strategy ETF

Pacer US Cash Cows 100 ETF

First Trust Dorsey Wright Focus 5 ETF

SPDR S&P Global Natural Resources ETF

FlexShares Morningstar Global Upstream Natural Resources Index Fund

iShares Russell 1000 Value ETF

iShares Russell 1000 Growth ETF

JPMorgan Equity Premium Income ETF

iShares MSCI USA Momentum Factor ETF

Amplify Natural Resources Dividend Income ETF

YieldMax NVDA Option Income Strategy ETF

Invesco DWA Momentum ETF

Invesco S&P 500 Pure Value ETF

SPDR Portfolio S&P 500 Growth ETF

SPDR Portfolio S&P 500 Value ETF

T Rowe Price Blue Chip Growth ETF

First Trust NASDAQ Technology Dividend Index Fund

Yieldmax Tsla Option Income Etf

VictoryShares Free Cash Flow ETF

iShares MSCI USA Value Factor ETF

Vanguard Value ETF

Vanguard Growth ETF

Consumer Staples Select Sector SPDR Fund

Good Morning, VettaFi Voices! Growth has blown value out of the water in 2023. It's not even close. The Vanguard Value ETF (VTV) is up less than 1% year to date. Meanwhile, the Vanguard Growth ETF (VUG), the growth fund, is up 32%. That's a big difference, and clearly we're in a growth regime.

VettaFi Voices On: The Nature of Value

Invesco S&P 500® Pure Growth ETF tracks the S&P 500 Pure Growth Index, selecting 80 large-cap stocks with the strongest growth characteristics. Fees are 0.35% and the ETF has $1.80 billion in assets under management.

RPG: Pure Growth Potential Without Mega Caps, But Does It Deliver?

The Invesco S&P 500® Pure Growth ETF mirrors a proprietary index and focuses on securities that exhibit strong improving characteristics in the S&P 500® Index, rather than traditional 'growth' stocks. The fund's top sectors are currently energy and health care, and it rebalances annually based on its index's scores, capturing names with improving fundamentals and momentum. Despite its name, the ETF is more of a momentum ETF and does not represent an alternative to the Nasdaq or a fund that will necessarily contain disruptors and innovators.

RPG: Growth ETF, But Not What You Think

Is it the perfect time for investors to shift their focus to growth ETFs? Here's an analysis of the recent Fed chair's comments and what they could mean for your portfolio.

Time for Top-Ranked Low P/E Growth ETFs?

RPG invests in U.S. large-cap growth stocks in the S&P 500 Index. The fund has outperformed the broader market in the long run thanks to its strong growth characteristic in its portfolio.

RPG: Valuation Is Still High Vs. The Historical Range

Wall Street may record a short-term rally as bets over steep Fed rate hikes cooled down.

4 Top-Ranked Low P/E Growth ETFs to Buy Now

Innovator S&P 500 Buffer ETF - August

Innovator S&P 500 Buffer ETF - July

Innovator S&P 500 Buffer ETF June

Innovator S&P 500 Buffer ETF - October

Global X S&P 500 Catholic Values ETF

SPDR S&P 500 ESG ETF

WisdomTree U.S. Earnings 500 Fund

First Trust Large Cap Value AlphaDEX Fund

Direxion Daily S&P 500 High Beta Bull 3X Shares

Direxion Daily S&P 500 High Beta Bear 3X Shares

iShares S&P 500 Value ETF

iShares Core S&P 500 ETF

iShares S&P 500 Growth ETF

CBOE Vest S&P 500 Dividend Aristocrats Target Income ETF

ProShares S&P 500 Dividend Aristocrats ETF

Qraft AI-Enhanced US Next Value ETF

Innovator S&P 500 Power Buffer ETF - August

Invesco S&P 500 BuyWrite ETF

Innovator S&P 500 Power Buffer ETF - January

Innovator S&P 500 Power Buffer ETF June

WisdomTree CBOE S&P 500 PutWrite Strategy Fund

Global X S&P 500 Quality Dividend ETF

Invesco S&P 500 Equal Weight ETF

Once upon a time, dividends played a starring role in equity markets—until 14 years of easy money whetted investors' appetite for risk and created a massive tailwind for unprofitable, long-duration growth stocks. Valuations appear to be attractive: Stocks yielding north of 2.5% are trading near their largest discount to the equity market in recent memory.

Good Fishing In The Dividend Stream

The S&P 500 Index has rebounded sharply off its previous low in October, closing up 14% on Feb. 17 since October's trough. The market could continue to rally, of course.

Oversold-Overbought Watch: S&P 500 Index - February 21, 2023

Invesco Nasdaq 100 ETF

While equal weight has outperformed its cap-weighted parent S&P 500 consistently over the past year, the methodology is expected to be more volatile. The S&P 500 Equal Weight Index, tracked by the Invesco S&P 500 Equal Weight ETF (RSP), tilts towards smaller size (47.8%), value (33.4%), and dividend (15.6%) factors compared to the S&P 500.

Invesco's Nick Kalivas on Assessing Equal Weight's Volatility

Nasdaq F&B Shs Nasdaq Food & Beverage

SPDR Gold Trust

iShares U.S. Home Construction ETF

Technology Select Sector SPDR Fund

Inflation in the United States jumped at the start of 2023, but the annual increase was the lowest since October 2021, indicating a continued slowdown.

Inflation Rises the Lowest Since October 2021: ETFs to Tap

Hundreds of exchange traded funds provide investors with dedicated exposure to growth or value stocks, but in this corner of the ETF space, methodology truly matters.

With Growth, Value ETFs, Purity Matters

U.S. consumer prices unexpectedly fell for the first time in more than two-and-a half years in December.

5 ETFs to Benefit as Monthly Inflation Drops to 2-Year Low

The Xtrackers Russell US Multifactor ETF

iShares MSCI USA Multifactor ETF

Invesco Russell 1000 Dynamic Multifactor ETF

OShares U.S. Quality Dividend ETF

SPDR MSCI USA StrategicFactors ETF

Invesco S&P 500 High Beta ETF

Invesco S&P 500 Low Volatility ETF

SPDR Portfolio S&P 500 High Dividend ETF

In a livecast event this Friday, I'm going to be recapping the past year in ETFs and previewing what is likely ahead of us with one of my favorite people in the ETF industry that does not work for VettaFi, Cinthia Murphy.

Smart Beta Is Alive and Well

For many advisors, 2022 was likely the year they rediscovered the merits of value investing. The value style of index-based ETFs that favors stocks with relatively low price-to-earnings and price-to-book ratios signficantly outperformed the growth style that prefers companies with strong sales and earnings growth records.

What You Own in a Growth or Value ETF Just Changed

Invesco S&P MidCap Momentum ETF

Fed has indicated to slow down the rate hike momentum. This may open room for growth ETF investing.

4 Top-Ranked Growth ETFs to Buy As Rate Hike Momentum Cools

SPDR S&P Semiconductor ETF

Inflation in the United States is cooling down gradually as the consumer price index registered the lowest annual increase in November since late 2021.

ETFs to Benefit as Inflation Drops to One-Year Low

iShares Core S&P Small Cap ETF

 Invesco S&P SmallCap Consumer Discretionary ETF

SPDR S&P Retail ETF

A solid historical performance, Santa Claus Rally, a less-hawkish Federal Reserve and encouraging inflation data could unleash a mega-rally in December.

5 Top-Ranked ETFs to Buy for December

Nuveen Winslow Large-Cap Growth ESG ETF

Invesco QQQ

As inflation showed signs of cooling, the Fed is likely to slow the pace of rate hikes. This could benefit growth stocks and ETFs.

Time for Growth ETFs As Inflation Starts Cooling?

Invesco S&P 500 High Dividend Low Volatility ETF

S&P reports high growth categories of 500 index lost the most last month.

News for Invesco S&P 500 Pure Growth ETF ETF (RPG)