RZG - ETF AI Analysis

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

Rating:71Outperform

Price Target:―

RZG, the Invesco S&P Smallcap 600 Pure Growth ETF, has an overall rating that suggests it holds a generally solid mix of small-cap growth stocks with some notable strengths but also a few weaknesses. Strong contributors like TransMedics Group, InterDigital, Powell Industries, and Primoris Services support the fund’s quality through robust revenue growth, solid profitability, and positive earnings outlooks. However, weaker holdings such as ARMOUR Residential REIT, Adamas Trust, and Phibro Animal Health, which face financial challenges and higher leverage, slightly weigh on the rating, and the fund’s focus on smaller, growth-oriented companies can add volatility as a key risk factor.

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)

AUM112.48M

RegionNorth America

Expense Ratio0.35%

Beta0.98

IssuerInvesco

Inception DateMar 01, 2006

Dividend Yield0.34%

Asset ClassEquity

Index TrackedS&P Small Cap 600 Pure Growth

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume4,341

30 Day Avg. Volume4,056

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

68.02

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering130

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 hard into U.S. small-cap growth, with a noticeable tilt toward health care and industrial innovators. High-flyers like ACM Research and Powell Industries have been doing the heavy lifting, with rising momentum that helps power the fund. Primoris Services and DXP Enterprises are also pulling their weight, adding steady support from the industrial side. On the flip side, PTC Therapeutics has been lagging, acting as a bit of a speed bump. Overall, the fund is concentrated in niche U.S. growth stories rather than big, diversified blue chips.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ACMR	ACM Research	2.42%	$2.72M	$4.40B	195.38%	72 Outperform
POWL	Powell Industries	1.59%	$1.79M	$6.79B	228.03%	76 Outperform
DXPE	DXP Enterprises	1.59%	$1.78M	$2.50B	81.76%	71 Outperform
PRIM	Primoris Services	1.50%	$1.68M	$8.21B	115.46%	75 Outperform
VICR	Vicor	1.48%	$1.66M	$8.50B	214.86%	73 Outperform
TMDX	TransMedics Group	1.48%	$1.66M	$4.71B	88.74%	77 Outperform
PAHC	Phibro Animal Health	1.43%	$1.61M	$2.09B	132.85%	64 Neutral
IDCC	InterDigital	1.43%	$1.61M	$9.32B	73.38%	76 Outperform
ARR	ARMOUR Residential REIT	1.43%	$1.61M	$2.17B	-3.50%	58 Neutral
ADAM	Adamas Trust	1.43%	$1.60M	$725.60M	17.08%	60 Neutral

RZG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

57.28

Positive

100DMA

55.66

Positive

200DMA

53.51

Positive

Market Momentum

MACD

0.49

Positive

RSI

56.89

Neutral

STOCH

42.32

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 58.48, equal to the 50-day MA of 57.28, and equal to the 200-day MA of 53.51, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 56.89 is Neutral, neither overbought nor oversold. The STOCH value of 42.32 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
RZG	―	―	$112.48M	0.35%	71 Outperform
OUSM	―	―	$939.90M	0.48%	72 Outperform
FYC	―	―	$921.96M	0.70%	65 Neutral
ISCG	―	―	$910.04M	0.06%	68 Neutral
VIOG	―	―	$897.51M	0.10%	69 Neutral
JSML	―	―	$293.21M	0.30%	72 Outperform

Performance Comparison

RZG

Invesco S&P Smallcap 600 Pure Growth ETF

59.05

10.58

21.83%

OUSM

OShares U.S. Small-Cap Quality Dividend ETF

―

FYC

First Trust Small Cap Growth AlphaDEX Fund

―

ISCG

iShares Morningstar Small-Cap Growth ETF

―

VIOG

Vanguard S&P Small-Cap 600 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.

Disclaimer

This 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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