Launched on December 3, 2010, the Invesco S&P MidCap 400 GARP ETF (GRPM Quick QuoteGRPM - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.

The fund is sponsored by Invesco. It has amassed assets over $495.79 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus they have a nice balance of growth potential and stability.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.57%.

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 to the Financials sector -- about 23.6% of the portfolio. Healthcare and Consumer Discretionary round out the top three.

Looking at individual holdings, Abercrombie & Fitch Co (ANF) accounts for about 3.35% of total assets, followed by Hecla Mining Co (HL) and Duolingo Inc (DUOL).

The top 10 holdings account for about 26.46% of total assets under management.

Performance and Risk

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.

The ETF has added about 14.28% so far this year and is up about 13.83% in the last one year (as of 09/25/2026). In the past 52-week period, it has traded between $112.99 and $146.15.

The ETF has a beta of 1.01 and standard deviation of 19.51% for the trailing three-year period. With about 63 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P MidCap 400 GARP 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, GRPM is an outstanding option for investors seeking exposure to the Style Box - Mid Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Morningstar Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Morningstar Mid-Cap ETF has $104.44 billion in assets, iShares Core S&P Mid-Cap ETF has $121.66 billion. VO has an expense ratio of 0.03% and IJH charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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.