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Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?
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The Invesco S&P MidCap 400 GARP ETF (GRPM - Free Report) made its debut on 12/03/2010, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $466.13 million, making it one of the average sized ETFs in the Style Box - Mid Cap Blend. Before fees and expenses, GRPM seeks to match the performance of the S&P MIDCAP 400 GARP INDEX .
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 Expenses
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 GRPM are 0.35%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 31.3% of the portfolio. Consumer Discretionary and Energy round out the top three.
Taking into account individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 3.83% of the fund's total assets, followed by Valaris Ltd (VAL) and Renaissancere Holdings Ltd (RNR).
The top 10 holdings account for about 26.84% of total assets under management.
Performance and Risk
The ETF has lost about -2.79% so far this year and it's up approximately 9.83% in the last one year (as of 03/20/2026). In the past 52-week period, it has traded between $90.38 and $125.00
The fund has a beta of 1.07 and standard deviation of 20.50% for the trailing three-year period. With about 61 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco 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 $92.28 billion in assets, iShares Core S&P Mid-Cap ETF has $105.61 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 Blend
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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Is Invesco S&P MidCap 400 GARP ETF (GRPM) a Strong ETF Right Now?
The Invesco S&P MidCap 400 GARP ETF (GRPM - Free Report) made its debut on 12/03/2010, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Mid Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $466.13 million, making it one of the average sized ETFs in the Style Box - Mid Cap Blend. Before fees and expenses, GRPM seeks to match the performance of the S&P MIDCAP 400 GARP INDEX .
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 Expenses
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 GRPM are 0.35%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.87%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 31.3% of the portfolio. Consumer Discretionary and Energy round out the top three.
Taking into account individual holdings, Lantheus Holdings Inc (LNTH) accounts for about 3.83% of the fund's total assets, followed by Valaris Ltd (VAL) and Renaissancere Holdings Ltd (RNR).
The top 10 holdings account for about 26.84% of total assets under management.
Performance and Risk
The ETF has lost about -2.79% so far this year and it's up approximately 9.83% in the last one year (as of 03/20/2026). In the past 52-week period, it has traded between $90.38 and $125.00
The fund has a beta of 1.07 and standard deviation of 20.50% for the trailing three-year period. With about 61 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco 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 $92.28 billion in assets, iShares Core S&P Mid-Cap ETF has $105.61 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 Blend
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.