Should Invesco S&P MidCap 400 Pure Growth ETF (RFG) Be on Your Investing Radar?

Designed to provide broad exposure to the Mid Cap Growth segment of the US equity market, the Invesco S&P MidCap 400 Pure Growth ETF (RFG) is a passively managed exchange traded fund launched on March 1, 2006.The fund is sponsored by Invesco. It has amassed assets over $307.84 million, making it one of the average sized ETFs attempting to match the Mid Cap Growth segment of the US equity market.Why Mid Cap GrowthMid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus, companies that fall under this category provide a stable and growth-heavy investment.Qualities of growth stocks include faster growth rates compared to the broader market, as well as higher valuations and higher than average sales and earnings growth rates. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets. CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.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 0.33%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector -- about 35.9% of the portfolio. Healthcare and Consumer Discretionary round out the top three.Looking at individual holdings, Comfort Systems Usa Inc (FIX) accounts for about 4.15% of total assets, followed by Roivant Sciences Ltd (ROIV) and Carpenter Technology Corp (CRS).The top 10 holdings account for about 23.72% of total assets under management.Performance and RiskRFG seeks to match the performance of the S&P MidCap 400 Pure Growth Index before fees and expenses. The S&P MidCap 400 Pure Growth Index measures the performance of securities that exhibit strong growth characteristics in the S&P MidCap 400 Index.The ETF has added roughly 6.72% so far this year and was up about 13.43% in the last one year (as of 01/15/2026). In the past 52-week period, it has traded between $39.08 and $55.96.The ETF has a beta of 1.12 and standard deviation of 19.41% for the trailing three-year period, making it a medium risk choice in the space. With about 99 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap 400 Pure Growth 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, RFG is an excellent option for investors seeking exposure to the Style Box - Mid Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well. The Vanguard Mid-Cap Growth ETF (VOT) and the iShares Russell Mid-Cap Growth ETF (IWP) track a similar index. While Vanguard Mid-Cap Growth ETF has $18.24 billion in assets, iShares Russell Mid-Cap Growth ETF has $21.00 billion. VOT has an expense ratio of 0.07% and IWP charges 0.23%.Bottom-LinePassively 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P MidCap 400 Pure Growth ETF (RFG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks