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, earns a solid overall rating driven by several high-quality growth names with strong financial performance and positive outlooks. Standout holdings like Progyny, TransMedics Group, Primoris Services, ACADIA Pharmaceuticals, and InterDigital support the fund’s quality through robust revenue growth, strategic initiatives, and generally favorable earnings call sentiment, though some face high valuations. A few weaker positions such as ARMOUR Residential REIT and Arrowhead Pharmaceuticals, which struggle with financial challenges and mixed fundamentals, slightly weigh on the rating, and investors should note the fund’s exposure to smaller, growth-focused companies 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)

AUM112.31M

RegionNorth America

Expense Ratio0.35%

Beta0.98

IssuerInvesco

Inception DateMar 01, 2006

Dividend Yield0.35%

Asset ClassEquity

Index TrackedS&P Small Cap 600 Pure Growth

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume3,472

30 Day Avg. Volume4,223

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

66.63

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering131

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 health care and tech names setting the tone. High-flyers like ACM Research and TransMedics are doing much of the heavy lifting, riding strong momentum and upbeat growth stories. Primoris Services adds a steady industrial backbone, quietly helping performance. On the softer side, biotech names like PTC Therapeutics and Arrowhead Pharmaceuticals have been more mixed, occasionally tripping up the fund despite recent rebounds. Overall, this is a domestically focused, high-growth portfolio where a handful of nimble innovators steer the ship.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
ACMR	ACM Research	1.79%	$1.97M	$3.32B	189.49%	72 Outperform
PTCT	PTC Therapeutics	1.56%	$1.72M	$6.12B	65.46%	72 Outperform
ADAM	Adamas Trust	1.48%	$1.63M	$742.33M	37.02%	60 Neutral
PRIM	Primoris Services	1.47%	$1.62M	$8.13B	117.80%	75 Outperform
TMDX	TransMedics Group	1.46%	$1.61M	$4.76B	121.55%	77 Outperform
ARR	ARMOUR Residential REIT	1.45%	$1.60M	$2.05B	-2.14%	58 Neutral
ACAD	ACADIA Pharmaceuticals	1.40%	$1.55M	$4.54B	47.02%	75 Outperform
PGNY	Progyny	1.40%	$1.54M	$2.14B	8.24%	79 Outperform
ARWR	Arrowhead Pharmaceuticals	1.38%	$1.52M	$9.08B	229.98%	57 Neutral
IDCC	InterDigital	1.31%	$1.45M	$8.50B	85.93%	76 Outperform

RZG Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

55.36

Positive

100DMA

54.80

Positive

200DMA

52.19

Positive

Market Momentum

MACD

0.79

Negative

RSI

60.08

Neutral

STOCH

59.32

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 56.81, equal to the 50-day MA of 55.36, and equal to the 200-day MA of 52.19, indicating a bullish trend. The MACD of 0.79 indicates Negative momentum. The RSI at 60.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.32 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	―	―	$112.31M	0.35%	―
VTWV	―	―	$991.83M	0.10%	―
FYC	―	―	$907.56M	0.70%	―
ISCG	―	―	$906.87M	0.06%	―
VIOG	―	―	$886.44M	0.10%	―
JSML	―	―	$306.21M	0.30%	―

Performance Comparison

RZG

Invesco S&P Smallcap 600 Pure Growth ETF

58.01

6.61

12.86%

VTWV

Vanguard Russell 2000 Value 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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