SPGP's Energy sector exposure was dramatically reduced at its last semi-annual reconstitution, and this change was positive from both a GARP and earnings quality perspective. Importantly, SPGP also looks good from a forward GARP perspective, evidenced by its 17.10x forward P/E and 14.63% one-year estimated earnings per share growth rate. However, SPGP is still vulnerable to getting stuck in sectors whose growth rates are trending downward. This article explains why Technology, Financials, and Energy are the three to watch.
The Invesco S&P 500 GARP ETF offers a diversified 75-stock portfolio blending value and growth characteristics from the S&P 500 universe. SPGP features balanced sector exposure, superior earnings and sales growth rates, and lower valuation multiples compared to SPY. Despite matching SPY's long-term returns, SPGP has higher volatility, a lower Sharpe ratio, and recent underperformance versus both SPY and key competitor GARP.
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.
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.
Launched on 06/17/2011, the Invesco S&P 500 GARP ETF (SPGP) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
Investors are shifting towards value stocks, benefiting sectors like Financials, Health Care, and Materials, which supports a buy rating on SPGP. Invesco S&P 500 GARP ETF focuses on 'growth at a reasonable price,' offering a balanced approach between high-growth stocks and value stocks, with a favorable PEG ratio of 1.5. Despite volatility, SPGP has returned 6% this year, with a strong seasonal trend expected from February to July and a positive technical outlook.
Launched on 06/17/2011, the Invesco S&P 500 GARP ETF (SPGP) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Growth segment of the US equity market.
When investors think about owning the market, the go-to exchange-traded fund (ETF) or mutual fund is usually an S&P 500 (^GSPC -1.54%) index tracker. That's not a bad call at all, but there are other ways to get exposure to the market that are a bit more nuanced.
As of this writing, the S&P 500 has risen around 27% in 2024. That's an incredible performance.