RZG - AI Analysis

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

Rating:70Neutral

Price Target:

$60.00

The ETF RZG, managed by Invesco, has a solid overall rating, reflecting a mix of strong performers and a few weaker holdings. InterDigital (IDCC) stands out as a key driver of the fund's rating due to its robust financial performance, strategic agreements, and bullish technical indicators. Similarly, Powell Industries (POWL) contributes positively with strong earnings and momentum, though slightly tempered by valuation concerns. On the other hand, Protagonist Therapeutics (PTGX) and TG Therapeutics (TGTX) have weaker financial stability and valuation metrics, which may have held back the fund's overall rating. A potential risk factor for the ETF is its exposure to smaller companies, which can be more volatile and sensitive to market changes.

Positive Factors

Strong Top Holdings

Several of the ETF’s largest positions, such as Protagonist Therapeutics and InterDigital, have delivered strong year-to-date performance, supporting overall returns.

Sector Diversification

The ETF spreads its investments across ten sectors, including Health Care, Industrials, and Financials, reducing reliance on any single industry.

Reasonable Expense Ratio

The ETF’s expense ratio of 0.35% is competitive for a specialized fund, helping investors retain more of their returns.

Negative Factors

High Geographic Concentration

The ETF is heavily focused on U.S. companies, with over 99% exposure, limiting diversification across global markets.

Underperforming Holdings

Some top holdings, like Veracyte, have shown weak year-to-date performance, which could drag on the fund’s overall momentum.

Small Asset Base

With just over $104 million in assets under management, the ETF may face liquidity challenges compared to larger funds.

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

AUM106.91M

RegionNorth America

Expense Ratio0.35%

Beta1.01

IssuerInvesco

Inception DateMar 01, 2006

Dividend Yield0.49%

Asset ClassEquity

Index TrackedS&P Small Cap 600 Pure Growth

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume3,421

30 Day Avg. Volume3,316

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

65.57

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering137

RZG Summary

The Invesco S&P SmallCap 600 Pure Growth ETF (RZG) is a fund that focuses on small-cap companies in the U.S. with strong growth potential. It tracks the S&P SmallCap 600 Pure Growth Index, which includes businesses showing rapid earnings and sales growth. Some of its top holdings are Protagonist Therapeutics and InterDigital. Investors might consider RZG for its potential to deliver high returns by tapping into the innovation and agility of smaller companies. However, it’s important to know that small-cap stocks can be more volatile, meaning their prices can rise and fall quickly.

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

The Invesco S&P SmallCap 600 Pure Growth ETF (RZG) is riding high on the back of standout performers like Sterling Infrastructure and InterDigital, both benefiting from strong financial results and strategic initiatives. Health Care and Industrials dominate the fund, showcasing its focus on innovation and economic growth. However, not all holdings are pulling their weight—Corcept Therapeutics and TG Therapeutics have shown mixed momentum recently, with valuation concerns and cash flow challenges weighing on their performance. With its U.S.-centric portfolio, RZG offers a dynamic but concentrated play on small-cap growth stories.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
IDCC	InterDigital	2.69%	$2.80M	$10.23B	163.47%	79 Outperform
PTGX	Protagonist Therapeutics	2.65%	$2.76M	$4.84B	69.83%	56 Neutral
DXPE	DXP Enterprises	1.92%	$2.01M	$1.90B	146.54%	80 Outperform
POWL	Powell Industries	1.85%	$1.93M	$4.56B	48.12%	75 Outperform
AAMI	Acadian Asset Management	1.79%	$1.86M	$1.78B	88.33%	67 Neutral
ATGE	Adtalem Global Education	1.66%	$1.73M	$5.15B	75.20%	70 Outperform
CORT	Corcept Therapeutics	1.54%	$1.61M	$7.61B	47.56%	70 Outperform
STRL	Sterling Infrastructure	1.48%	$1.55M	$11.53B	145.41%	79 Outperform
TGTX	TG Therapeutics	1.45%	$1.51M	$5.40B	35.75%	61 Neutral
VCYT	Veracyte	1.44%	$1.50M	$2.78B	4.71%	73 Outperform

RZG Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price―

Price Trends

50DMA

54.31

Negative

100DMA

52.70

Positive

200DMA

50.37

Positive

Market Momentum

MACD

0.14

Positive

RSI

45.29

Neutral

STOCH

13.44

Positive

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RZG, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 54.49, equal to the 50-day MA of 54.31, and equal to the 200-day MA of 50.37, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 45.29 is Neutral, neither overbought nor oversold. The STOCH value of 13.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RZG.

RZG Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
RZG	―	―	$106.91M	0.35%	70 Neutral
OUSM	―	―	$939.81M	0.48%	72 Outperform
VIOG	―	―	$831.09M	0.10%	69 Neutral
ISCG	―	―	$778.83M	0.06%	67 Neutral
FYC	―	―	$644.42M	0.70%	63 Neutral
JSML	―	―	$253.78M	0.30%	71 Outperform

Performance Comparison

RZG

Invesco S&P Smallcap 600 Pure Growth ETF

53.89

4.78

9.73%

OUSM

OShares U.S. Small-Cap Quality Dividend ETF

―

VIOG

Vanguard S&P Small-Cap 600 Growth ETF

―

ISCG

iShares Morningstar Small-Cap Growth ETF

―

FYC

First Trust Small Cap Growth AlphaDEX Fund

―

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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