GRPM: INVESCO S&P MIDCAP 400 GARP ETF
Understanding the INVESCO S&P MIDCAP 400 GARP ETF (GRPM)
The INVESCO S&P MIDCAP 400 GARP ETF, trading under the ticker GRPM, is an exchange-traded fund designed to follow a specific investment strategy. It focuses on midcap companies using a "GARP" approach, which stands for Growth at a Reasonable Price.
What this ETF is trying to do
This ETF seeks to invest in medium-sized companies that show signs of growth but are not considered overpriced. By looking for these specific types of stocks, the fund aims to capture growth while managing value.
What the numbers show
The data shows that GRPM has experienced significant price growth over different time periods.
• Year-to-Date (YTD): The price return is approximately 15.71%. When including distributions, the YTD total return is approximately 16.23%.
• One-Year: The one-year price return is approximately 16.13%, while the one-year total return is approximately 16.86%.
• Three-Year: Over the last three years, the price return has been approximately 60.96%, and the total return has been approximately 65.60%.
To visualize the price change, an investor could look at the estimated price from roughly one year ago, which was $119.58, compared to the current price of $138.86.
Income and distribution explanation
GRPM provides cash distributions to investors. The current distribution yield is approximately 0.56%. This means the fund paid out about $0.78 per share in trailing distributions. The fund usually pays these amounts on a quarterly basis, having made 4 payments over the last 12 months.
It is important to remember that "price return" only tracks the change in the share price, while "total return" includes both the price change and the distributions paid out.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund has an erosion score of 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are some of the top holdings in the fund (note that this is a partial list):
• Abercrombie & Fitch Co Class A (3.19%)
• Halozyme Therapeutics Inc (3.11%)
• Duolingo Inc (2.91%)
• Hecla Mining Co (2.82%)
• Interdigital Inc (2.81%)
• Appfolio Inc Class A (2.46%)
Pros and Cons
Pros:
• Strong historical price returns over the one-year and three-year periods.
• No detected price erosion based on the current erosion score.
Cons:
• The distribution yield is relatively low (0.56%) compared to funds designed specifically for high income.
Beginner takeaway
GRPM is an ETF that focuses on midcap growth stocks. For investors, the data shows a history of rising share prices and positive total returns. While it does pay distributions, they are modest. Always remember that past performance does not guarantee what will happen in the future.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ABERCROMBIE & FITCH CO CLASS A | ANF | 3.19% |
| 2 | HALOZYME THERAPEUTICS INC | HALO | 3.11% |
| 3 | DUOLINGO INC | DUOL | 2.91% |
| 4 | HECLA MINING CO | HL | 2.82% |
| 5 | INTERDIGITAL INC | IDCC | 2.81% |
| 6 | APPFOLIO INC CLASS A | APPF | 2.46% |
| 7 | MEDPACE HOLDINGS INC | MEDP | 2.43% |
| 8 | RENAISSANCERE HOLDINGS LTD | RNR | 2.39% |
| 9 | KINSALE CAPITAL GROUP INC | KNSL | 2.33% |
| 10 | PAYLOCITY HOLDING CORP | PCTY | 2.29% |