Last week we highlighted institutional rotation into several Growth and Value ETF equity offerings (IVE, IVW, IJK, IJJ, IJS, IJT) that are based around well- known indexes such as the S&P 400, S&P 500, and S&P 600, and we continue to see similar activity heading into the final trading days of the year.
One particular fund jumps out to us most recently, RPG (Guggenheim S&P 500 Pure Growth, Expense Ratio 0.35%), as this ETF has also been a recipient of creation driven inflows to the tune of more than $300 million, bringing the fund’s asset base to about $900 million.
RPG and its sister ETF RPV (Guggenheim S&P 500 Pure Value, Expense Ratio 0.35%) are not nearly as well known as the aforementioned iShares Growth and Value equity based ETFs in terms of assets under management or trading volume, but the funds have built some momentum and staying power in the space due to their unique design.
RPG is based on the S&P 500/Citigroup Pure Growth Index which differs from the index benchmark of say IVW (iShares S&P 500 Growth, Expense Ratio 0.18%) which is the S&P 500/Citigroup
Growth Index (note the absence of the word “pure”).
The same difference exists between RPV and IVE (iShares S&P 500 Value, Expense Ratio 0.19%). Since its inception in 2006, RPG has posted impressive returns head to head against its peers.
Unlike other offerings that adopt a market capitalization weighted approach to the underlying Growth or Value index, the Guggenheim “Pure” products are weighted by “style scores” which are re-balanced annually (whereas market cap never re-balances). A quick examination of top holdings of RPG show some notable differences versus top holdings of say IVW or SPY with HBAN (2.24%), TRIP (1.92%), NFLX (1.91%), CELG (1.90%), and SWY (1.86%) making up the top five, giving the fund a lesser focus on “mega-caps” than its peers.
IVW’s top holdings are AAPL, GOOG, XOM, KO, and MSFT, while SPY of course has its top weightings in XOM, AAPL, MSFT, JNJ, and GE.
Guggenheim S&P 500 Pure Growth ETF
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at email@example.com.
Street One Financial is an educational/research firm utilizing the Broker Dealer services of GWM Group Inc (RLCC) a FINRA registered Broker/Dealer. All trades are executed through GWM Group (RLCC) and cleared by Fidelity (NFS)DTC number 0226. Street One Financial LLC makes available products and services offered by GWM Group Inc., a registered broker-dealer and Member Securities Investor Protection Corporation (SIPC), Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.