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RZG - ETF AI Analysis

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RZG

Invesco S&P Smallcap 600 Pure Growth ETF (RZG)

Rating:71Outperform
Price Target:
RZG, the Invesco S&P Smallcap 600 Pure Growth ETF, earns a solid overall rating, largely supported by strong holdings like Clear Secure, Powell Industries, and InterDigital, which show healthy financial performance, positive earnings outlooks, and solid growth drivers. Some positions such as Phibro Animal Health and Adamas Trust introduce concerns around high leverage, weaker cash flows, or bearish technical trends, which modestly weigh on the fund’s rating. The main risk factor is exposure to several smaller companies with high leverage and valuation concerns, which can make the ETF more sensitive to market volatility and financial stress.
Positive Factors
Recent Performance Momentum
The ETF has shown steady gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Growth-Oriented Top Holdings
Several of the largest positions, such as ACM Research, Primoris Services, and TransMedics Group, have delivered strong year-to-date performance that supports the fund’s returns.
Broad Sector Diversification
Holdings spread across health care, technology, industrials, financials, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
Higher-Than-Index Expense Ratio
The fund’s expense ratio is meaningfully higher than many low-cost index ETFs, which can modestly reduce long-term net returns.
Single-Country Concentration
With almost all assets invested in U.S. companies, the ETF offers little geographic diversification and is highly tied to the U.S. economy.
Exposure to Volatile Small-Cap Growth Stocks
The focus on small-cap pure growth names, including several health care and biotech companies with mixed performance, can lead to larger price swings and higher risk.

RZG vs. SPDR S&P 500 ETF (SPY)

RZG Summary

RZG is the Invesco S&P SmallCap 600 Pure Growth ETF, which follows the S&P Small Cap 600 Pure Growth Index. It focuses on fast-growing smaller U.S. companies across many sectors, especially health care, technology, and industrials. Examples of holdings include ACM Research and ACADIA Pharmaceuticals. Someone might invest in RZG if they want growth potential from smaller, innovative businesses and diversification across many industries rather than picking individual small-cap stocks. A key risk is that small-cap growth stocks can be very volatile, so the ETF’s price can rise and fall more sharply than the overall market.
How much will it cost me?The Invesco S&P SmallCap 600 Pure Growth ETF (RZG) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average because it is designed to track a specific niche index of small-cap growth companies, requiring more active management. It’s a good option if you’re looking for targeted exposure to high-growth small-cap stocks.
What would affect this ETF?The ETF's focus on U.S. small-cap growth companies means it could benefit from economic expansion, increased innovation, and favorable conditions for entrepreneurial businesses, particularly in sectors like health care and technology. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller companies, or economic slowdowns that disproportionately impact small-cap stocks. Regulatory changes in key sectors like health care or financials could also influence performance.

RZG Top 10 Holdings

RZG is leaning into U.S. small-cap growth with a clear tilt toward tech and health care, and a handful of names are doing the heavy lifting. DigitalOcean and Clear Secure have been rising smartly, giving the fund a tech-fueled tailwind, while Powell Industries adds steady industrial strength after a strong run this year. On the flip side, ACM Research has been choppy and PTC Therapeutics is losing steam, both acting as mild drags. Overall, performance is driven by a mix of nimble, fast-growing U.S. innovators rather than any single dominant stock.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
DigitalOcean Holdings1.73%$1.80M$7.60B124.04%
73
Outperform
Clear Secure1.71%$1.79M$6.42B87.38%
77
Outperform
ACM Research1.67%$1.75M$2.86B62.08%
72
Outperform
Protagonist Therapeutics1.64%$1.72M$6.31B87.79%
68
Neutral
Powell Industries1.58%$1.65M$6.27B180.10%
76
Outperform
Phibro Animal Health1.52%$1.59M$2.06B131.78%
64
Neutral
Primoris Services1.47%$1.54M$7.50B118.20%
75
Outperform
PTC Therapeutics1.45%$1.52M$5.41B14.28%
72
Outperform
Adamas Trust1.40%$1.47M$664.99M8.25%
60
Neutral
InterDigital1.38%$1.44M$8.37B49.84%
76
Outperform

RZG Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
57.91
Negative
100DMA
56.22
Negative
200DMA
54.31
Positive
Market Momentum
MACD
-0.64
Positive
RSI
36.89
Neutral
STOCH
24.89
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RZG, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 57.59, equal to the 50-day MA of 57.91, and equal to the 200-day MA of 54.31, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 36.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RZG.

RZG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$107.65M0.35%
71
Outperform
$903.16M0.10%
69
Neutral
$881.44M0.70%
65
Neutral
$871.26M0.48%
72
Outperform
$861.51M0.06%
67
Neutral
$273.58M0.30%
71
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RZG
Invesco S&P Smallcap 600 Pure Growth ETF
55.04
6.92
14.38%
VIOG
Vanguard S&P Small-Cap 600 Growth ETF
FYC
First Trust Small Cap Growth AlphaDEX Fund
OUSM
OShares U.S. Small-Cap Quality Dividend ETF
ISCG
iShares Morningstar Small-Cap Growth ETF
JSML
Janus Henderson Small Cap Growth Alpha ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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