If you're interested in broad exposure to the Large Cap Growth segment of the US equity market, look no further than the Invesco S&P 500 Pure Growth ETF (RPG Quick QuoteRPG - Free Report) , a passively managed exchange traded fund launched on 03/01/2006.

The fund is sponsored by Invesco. It has amassed assets over $1.55 billion, making it one of the larger ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap Growth

Large cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

While growth stocks do boast higher than average sales and earnings growth rates, and they are expected to grow faster than the wider market, investors should note these kinds of stocks have higher valuations. Further, growth stocks have a higher level of volatility associated with them. Even though growth stocks are more likely to outperform their value counterparts in strong bull markets, value stocks have a record of delivering better returns in almost all markets than growth stocks.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.23%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 24.30% of the portfolio. Consumer Discretionary and Information Technology round out the top three.

Looking at individual holdings, Norwegian Cruise Line Holdings Ltd (NCLH Quick QuoteNCLH - Free Report) accounts for about 2.67% of total assets, followed by United Airlines Holdings Inc (UAL Quick QuoteUAL - Free Report) and Carnival Corp (CCL Quick QuoteCCL - Free Report) .

The top 10 holdings account for about 22.29% of total assets under management.

Performance and Risk

RPG seeks to match the performance of the S&P 500 Pure Growth Index before fees and expenses. The S&P 500 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P 500 Index.

The ETF has lost about -4.92% so far this year and was up about 7.87% in the last one year (as of 03/10/2025). In the past 52-week period, it has traded between $33.42 and $45.03.

The ETF has a beta of 1.16 and standard deviation of 22.62% for the trailing three-year period, making it a medium risk choice in the space. With about 89 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P 500 Pure Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, RPG is an excellent option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth ETF (VUG Quick QuoteVUG - Free Report) and the Invesco QQQ (QQQ Quick QuoteQQQ - Free Report) track a similar index. While Vanguard Growth ETF has $148.41 billion in assets, Invesco QQQ has $308.59 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.

Bottom-Line

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

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.