Invesco S&P SmallCap 600® Pure Growth ETF

Invesco S&P SmallCap 600 Pure Growth ETF (RZG) is an index fund that holds the most growth-focused stocks in the S&P SmallCap 600. It held 128 stocks as of July 31, 2026. Many small-cap growth funds include stocks that show both growth and value traits; this fund leaves those out. It also gives the biggest weights to the stocks with the strongest growth scores, not the largest companies. That narrower approach costs 0.35% a year, about double the 0.18% average of similar funds.

• Over the year to Oct 27, 2026, RZG returned +12.4%, 7th of 9 among similar funds.
• Its 5-year annualized return was +3.8% and its 10-year +9.4%.
• In the 2020 COVID crash it fell 47.1% and regained its old high 7.8 months after the low.
• Its worst full calendar year was 2008 (-33.8%); its best was 2013 (+43.5%).
• The deepest fall in its price history was 58.5% (Oct 5, 2007 to Mar 9, 2009), recovered by Nov 5, 2010.

As of Jul 31, 2026, the fund held 128 securities; the ten largest made up 17.16% of assets. It also reported 29.93% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors added a net $8.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.35%, +13.08%, -5.65%.

RZG tracks the S&P SmallCap 600 Pure Growth Index, which S&P Dow Jones Indices builds and maintains. It starts with the S&P SmallCap 600, a list of smaller US companies. Each stock gets two scores. The growth score uses three-year growth in sales per share, the three-year change in earnings per share compared with the share price, and 12-month price momentum (how much the stock has risen). The value score uses book value, earnings and sales, each compared with the share price.

Only stocks that rank as "pure growth" get in. A stock that shows both growth and value traits is left out, which makes the index narrower than many style indexes. Stocks are weighted by growth score rather than company size. So a small company with strong growth can get a bigger weight than a larger one. As of June 30, 2026, the index had 125 stocks, with market values from $661.6 million to $13.5 billion.

The fund uses "full replication," meaning it generally owns every stock in the index at the index's weights. It trades when the index changes, not when a stock does badly. Portfolio turnover was 81%, so a large share of holdings changes hands each year. The fund held no derivatives as of July 31, 2026, and it does not use leverage or options. It could become "non-diversified" if a few stocks grow large in the index.

• RZG charges 0.35% a year, versus an average of 0.18% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $36 in the first year and $444 over 10 years (assuming a 5% annual return).

It is a narrow, high-turnover bet on fast-growing small companies that has had steep losses, so it fits better as a small add-on than as a foundation.

RZG adds a concentrated tilt toward fast-growing small companies, but it has fallen hard in downturns. It lost 58.5% in the 2008 financial crisis. It got back to its old high in November 2010, about 20 months after the March 2009 low. It dropped 47.1% in the 2020 COVID crash and recovered by November 2020. It fell 34.8% in the 2022 bear market and took about 25 months from its low to recover. Its worst calendar year was 2008, at -33.8%. Anyone who had to sell shares during those stretches would have locked in losses. The yield was 0.58% over the 12 months to October 27, 2026, paid quarterly, so it offers little income. In the SEC's standard example, $10,000 invested would cost $444 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.