Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Mid Cap Blend category of the market, the Invesco S&P MidCap 400 GARP ETF (GRPM) is a smart beta exchange traded fund launched on 12/03/2010.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.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexBecause the fund has amassed over $477.89 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Blend. GRPM is managed by Invesco. GRPM seeks to match the performance of the S&P MIDCAP 400 GARP INDEX before fees and expenses.The S&P MidCap 400 GARP Index seeks to track companies with consistent fundamental growth, reasonable valuation, solid financial strength, and strong earning power.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Annual operating expenses for GRPM are 0.35%, which makes it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.99%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.GRPM's heaviest allocation is in the Financials sector, which is about 31.2% of the portfolio. Its Energy and Consumer Discretionary round out the top three.Looking at individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 3.6% of total assets, followed by Valaris Ltd (VAL) and Technipfmc Plc (FTI).The top 10 holdings account for about 27.03% of total assets under management.Performance and RiskThe ETF has added roughly 3.99% and it's up approximately 17.31% so far this year and in the past one year (as of 05/20/2026), respectively. GRPM has traded between $103.31 and $127.86 during this last 52-week period. GRPM has a beta of 1.02 and standard deviation of 20.16% for the trailing three-year period. With about 60 holdings, it effectively diversifies company-specific risk .AlternativesInvesco S&P MidCap 400 GARP ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Mid-Cap Index Fund ETF Shares (VO) tracks CRSP US Mid Cap Index and the iShares Core S&P Mid-Cap ETF (IJH) tracks S&P MidCap 400 Index. Vanguard Mid-Cap Index Fund ETF Shares has $98.65 billion in assets, iShares Core S&P Mid-Cap ETF has $114.3 billion. VO has an expense ratio of 0.03% and IJH changes 0.05%.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 - Mid Cap BlendBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks