GRPM vs VONV

GRPMCInvesco S&P MidCap 400 GARP ETF

VONVAVanguard Russell 1000 Value ETF

In short

GRPM Take the S&P MidCap 400, then keep only the roughly 60 names that clear a growth-at-a-reasonable-price screen. GRPM is the stock-picker's cut of a midcap index fund, run by rules instead of a manager.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

GRPM The Fund invests at least 90% of its assets in securities comprising the S&P MidCap 400 GARP Index. The index targets companies with fundamental growth, reasonable valuations, financial strength and earning power.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• GRPM Screens a 400-stock midcap universe down to about 60 names on growth, valuation, financial strength and earning power. A real bet, not a benchmark in disguise.invesco.com
• Rules, not vibes: at least 90% of assets sit in S&P MidCap 400 GARP Index constituents, and the fund has hugged that index closely.invesco.com
• The odd one out among plain S&P 400 trackers like SPMD, IJH and IVOO: same universe, factor screen bolted on. Invesco has run the ticker since 2010.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• GRPM The screen costs money: 0.35% a year versus a 0.15% category median, and vanilla access to the same 400 stocks runs 0.03% at SPMD, 0.05% at IJH.
• Thinly traded next to the giants in its category, which tends to mean wider bid-ask spreads and more slippage on size.
• About 60 holdings means individual names swing the outcome, and the fund can diverge widely from the broad midcap 400 in either direction.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full GRPM profile⁠

Full VONV profile⁠