Invesco S&P 500 GARP ETF

SPGP

Market cap $2.44B

There are easy and inexpensive ways to broaden your stock market exposure, even within the S&P 500.

The iShares MSCI USA Quality GARP ETF (GARP) has outperformed the S&P 500 and MSCI USA index this year, delivering nearly 20% YTD returns. GARP's strategy combines growth, value, and quality metrics, resulting in strong total returns and risk-adjusted returns, coupled with a  relatively low expense ratio of 0.15%. The ETF is heavily weighted towards the technology sector, which boasts high growth prospects for 2026, but currently trades at elevated valuations.

The Invesco S&P 500 GARP ETF (SPGP) was launched on June 17, 2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

Invesco S&P 500 GARP ETF is rated a hold due to consistent underperformance versus the S&P 500 and higher fees. SPGP's GARP strategy leads to high portfolio turnover, sector concentration in cyclicals, and less tech exposure compared to VOO. Despite a slightly higher dividend yield, SPGP's risk-adjusted returns and volatility metrics are inferior to VOO across all timeframes.

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 GARP ETF (SPGP), a passively managed exchange traded fund launched on June 17, 2011.

The S&P 500 is what just about everyone uses to monitor the performance of the U.S. stock market. That makes sense given its broad representation of the U.S. economy, but does that mean it is the smartest way to invest in stocks?

SPGP blends growth with attractive valuations, offering a mid-cap and sector-diversified alternative to mega-cap heavy growth funds. The fund trades at a significant discount to peers, with strong historical and forecast EPS growth but slightly lower profitability metrics compared to the S&P 500. SPGP has lagged peers and the S&P 500 in bull markets but shows better downside resilience and lower volatility than most growth ETFs.

SPGP starts with strong foundations and an intriguing GARP selection strategy. The selection results offer a mix of low P/E ratios, positive EPS CAGR, and competitive ROE. But the lack of a forward-looking approach and weak FCF screening criteria make it less competitive compared to other solutions.

The Invesco S&P 500 GARP ETF (SPGP) was launched on 06/17/2011, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Growth segment of the US equity market.

SPGP targets 75 S&P 500 Index stocks with attractive growth-at-a-reasonable-price metrics. Its expense ratio is 0.75% and the ETF has $2.80 billion in assets under management. The Index relies on three-year historical sales and earnings growth rates to calculate growth scores, a process which is vulnerable to timing differences and changes in analyst expectations. The current portfolio is a prime example. While its growth/value combination is solid from a historical perspective, it's quite bleak on a forward-looking basis.