Bumping up the excitement on Wednesday, Invesco unfurled a new strand in its exchange-traded fund tapestry by introducing the Invesco S&P SmallCap 600 GARP ETF (NYSE Arca: GRPZ), a fund that rides the waves of a factor-based strategy.
A sleek net expense ratio of 0.35% adorns GRPZ. The fund finds its groove with the S&P SmallCap 600 GARP Index as its North Star.
Dipping into the cornucopia, the foundation of the index plucks its fruits from the S&P SmallCap 600 Index’s garden. It cherry-picks 90 fruits based on their exposure to the quality, value, and growth factors using a scoring system steeped in relevant data. The index dance then places weight on these fruit-bearing companies based on their growth scores, the prospectus whispers.
As of the twilight of February 2024, the document also whispers that the foundation includes shares in 88 companies sporting market caps ranging from $436 million to $7.8 billion. It witnesses a grand rebalancing and reassembly twice a year.
Wrapping up the Invesco Fund Collection
Painting the Invesco canvas further, in the gallant portfolio stand the $361.4 million Invesco S&P MidCap 400 GARP ETF (GRPM) and the stout $4.8 billion Invesco S&P 500 GARP ETF (SPGP), with the candle of GRPZ lighting up the suite of funds. The acronym “GARP” draws forth the heralded financial hymn “growth at a reasonable price.” The mission is to sidestep the lofty valuations that can sometimes tag along with growth stocks while dodging the snares of value traps by nestling investments in companies displaying earnings growth.
“In the unfolding saga, advisors are scanning the horizons for small-cap ETFs to sprinkle diversity into their client’s portfolios according to our scouts. This smart beta ETF will make a delightful companion to its elder kin SPGP,” chirped VettaFi’s enchanting head of exploration Todd Rosenbluth.
Standing tall in the land of ETFs, Invesco proudly flaunts 221 unique ETFs sauntering around the United States. These treasures guard over a covetable $500 billion in assets under management. The largest whale in Invesco’s school, the Invesco QQQ Trust Series I (NYSE Arca: QQQ), steers a mighty course over $250 billion in AUM.
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