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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 thanks to several strong growth-focused holdings like Clear Secure (YOU) and Powell Industries (POWL), which show robust financial performance, positive earnings calls, and healthy backlogs that support future growth. The rating is held back somewhat by names such as Phibro Animal Health (PAHC) and PTC Therapeutics (PTCT), where high leverage, cash flow pressures, or bearish technical trends introduce added risk. A key risk factor for this ETF is its emphasis on smaller, fast-growing companies, which can mean more volatility and sensitivity to financial or technical setbacks.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum in its strategy.
Well-Diversified Across Sectors
Holdings are spread across many industries like health care, industrials, technology, and financials, which helps reduce the impact of weakness in any single sector.
Top Holdings Showing Solid Growth
Many of the largest positions have delivered strong year-to-date gains, which has supported the fund’s overall performance.
Negative Factors
Higher Expense Ratio for a Small-Cap ETF
The fund’s expense ratio is on the higher side compared with many broad market ETFs, which can slightly reduce long-term returns.
Single-Country Concentration
All of the ETF’s exposure is in U.S. stocks, so it does not benefit from diversification across different global markets.
Small-Cap Growth Volatility
Because the ETF focuses on small-cap growth companies, its share price can be more sensitive to market swings and economic slowdowns.

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, including health care, industrials, and technology. Examples of holdings include Clear Secure and Powell Industries. Someone might invest in RZG if they want growth potential from smaller, more innovative businesses and diversification across many industries. However, because it invests in small companies and growth stocks, its price can be more volatile and can go up and down 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’s story is all about fast-moving U.S. small caps, with a tilt toward industrials, tech, and health care. Powell Industries, Clear Secure, and Argan are doing the heavy lifting, with rising share prices that give the fund a solid growth engine. Uniti Group and Adeia are also climbing, but their higher risk profiles and legal or balance-sheet overhangs keep them from being pure heroes. ACM Research is more mixed, occasionally losing steam, which shows that in this small-cap growth arena, not every name is sprinting at the same pace.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Powell Industries2.04%$2.46M$9.21B321.74%
76
Outperform
Argan1.84%$2.22M$9.11B335.11%
73
Outperform
ACM Research1.74%$2.10M$3.69B155.91%
72
Outperform
Clear Secure1.66%$2.00M$7.31B118.44%
77
Outperform
Uniti Group1.66%$2.00M$2.86B45.79%
68
Neutral
StoneX Group1.62%$1.96M$8.35B81.44%
58
Neutral
Primoris Services1.56%$1.88M$9.31B182.63%
75
Outperform
DXP Enterprises1.53%$1.84M$2.63B93.36%
71
Outperform
Adeia1.46%$1.77M$3.36B143.57%
65
Neutral
Acadian Asset Management1.44%$1.74M$2.42B153.36%
66
Neutral

RZG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
59.18
Positive
100DMA
58.06
Positive
200DMA
55.68
Positive
Market Momentum
MACD
1.50
Negative
RSI
68.77
Neutral
STOCH
70.81
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RZG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 62.10, equal to the 50-day MA of 59.18, and equal to the 200-day MA of 55.68, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 68.77 is Neutral, neither overbought nor oversold. The STOCH value of 70.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RZG.

RZG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$121.80M0.35%
71
Outperform
$942.82M0.06%
67
Neutral
$941.88M0.20%
66
Neutral
$933.73M0.10%
69
Neutral
$906.93M0.48%
72
Outperform
$314.92M0.30%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RZG
Invesco S&P Smallcap 600 Pure Growth ETF
64.59
17.59
37.43%
ISCG
iShares Morningstar Small-Cap Growth ETF
GSSC
Goldman Sachs Activebeta U.S. Small Cap Equity ETF
VIOG
Vanguard S&P Small-Cap 600 Growth ETF
OUSM
OShares U.S. Small-Cap Quality Dividend 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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