Invesco S&P MidCap 400 GARP ETF (GRPM US) – Portfolio Construction Methodology

The underlying S&P MidCap 400 GARP Index provides a factor tilt within the S&P MidCap 400 universe by selecting mid-cap companies that combine above-average growth with reasonable valuations and quality balance-sheet metrics. Eligible constituents first inherit the S&P MidCap 400’s committee-driven size and liquidity screens, which confine the universe to U.S. mid-cap stocks between the S&P SmallCap 600 and S&P 500 capitalization bands and subject to ongoing profitability and trading-volume requirements. The index provider then calculates a composite growth-at-a-reasonable-price score for each stock using measures such as historical and forecast earnings and sales growth, ROE and cash-flow-based valuation ratios. Roughly the highest-scoring third of the universe is selected, with diversification buffers favouring existing members when scores are close to the cutoff. Constituents are weighted by the product of float-adjusted market cap and GARP score, subject to single-stock and sector concentration limits, and the index is rebalanced semi-annually with interim corporate-action adjustments.

To explore GRPM in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/GRPM_US