RFG: INVESCO S&P MIDCAP 400 PURE GROWTH ETF
Share-split context: A forward split was recorded on Jul 17, 2023 with coefficient 5. A forward split turns each old share into multiple new shares and lowers the quoted price per share proportionally. Proportional ownership is unchanged at the split moment, so the split itself creates neither a gain nor a loss. The price-return figures in this report are already split-adjusted.
ETF Education Report: INVESCO S&P MIDCAP 400 PURE GROWTH ETF (RFG)
What this ETF is trying to do
The INVESCO S&P MIDCAP 400 PURE GROWTH ETF (ticker: RFG) is an exchange-traded fund designed to track midcap growth companies. It focuses on businesses that are often in a growth phase. This ETF holds 102 different companies.
What the numbers show
The current price of one share is $59.83. When looking at how this ETF has performed, it is important to understand two different types of returns: price return (the change in the share price) and total return (which includes both price changes and distributions).
Because this ETF has a history of "forward splits," the historical prices have been adjusted so they are easy to compare. In a forward split, one old share becomes multiple new shares. This makes the price per share look lower, but it does not change how much of the company you own.
Here is the performance data:
• Year-to-Date (YTD): The price return is approximately 14.11%, while the total return is approximately 14.18%.
• One-Year: The price return is approximately 17.53%, while the total return is approximately 17.66%.
• Three-Year: The price return is approximately 56.30%, while the total return is approximately 58.17%.
Income and distribution explanation
This ETF pays out cash to investors, known as distributions. The distribution yield is approximately 10.66%. This number tells you how much cash was paid out relative to the current share price. These distributions usually happen quarterly, and there were 4 payouts in the last year.
It is important to remember that a high distribution yield is not the same as total return. While distributions provide cash income, they are separate from the growth of the share price itself.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). Some investors worry that high payouts might cause the fund's value to shrink over time. However, for RFG, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.
Top Holdings
The following are some of the top holdings in this portfolio (note that this is a partial list):
• HALOZYME THERAPEUTICS INC (2.68%)
• ARROWHEAD PHARMACEUTICALS INC (2.56%)
• TECHNIPFMC PLC (2.22%)
• CARPENTER TECHNOLOGY CORP (2.04%)
• ATI INC (1.92%)
• INTERDIGITAL INC (1.91%)
• FIVE BELOW INC (1.90%)
• MEDPACE HOLDINGS INC (1.86%)
• STERLING INFRASTRUCTURE INC (1.83%)
• VALARIS LTD (1.78%)
Pros
• The ETF has shown positive price returns and total returns over the one-year and three-year periods.
• It provides a significant distribution yield for those seeking cash income.
Cons
• Because it focuses on "growth" companies, the value can change based on how those specific types of businesses perform.
Beginner takeaway
When looking at RFG, you can see both share-price growth and cash distributions. Always look at the total return to get a full picture of how the investment performed, rather than just looking at the share price or the yield alone.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | HALOZYME THERAPEUTICS INC | HALO | 2.68% |
| 2 | ARROWHEAD PHARMACEUTICALS INC | ARWR | 2.56% |
| 3 | TECHNIPFMC PLC | n/a | 2.22% |
| 4 | CARPENTER TECHNOLOGY CORP | CRS | 2.04% |
| 5 | ATI INC | ATI | 1.92% |
| 6 | INTERDIGITAL INC | IDCC | 1.91% |
| 7 | FIVE BELOW INC | FIVE | 1.90% |
| 8 | MEDPACE HOLDINGS INC | MEDP | 1.86% |
| 9 | STERLING INFRASTRUCTURE INC | STRL | 1.83% |
| 10 | VALARIS LTD | VAL | 1.78% |