SPGP: Why This S&P 500 GARP ETF Looks Better With Less Energy Sector Exposure (Rating Upgrade)
Summarize this article with:
The Sunday Investor7.04K FollowersFollow5ShareSavePlay(14min)CommentsSummarySPGP's Energy sector exposure was dramatically reduced at its last semi-annual reconstitution, and this change was positive from both a GARP and earnings quality perspective.Importantly, SPGP also looks good from a forward GARP perspective, evidenced by its 17.10x forward P/E and 14.63% one-year estimated earnings per share growth rate.However, SPGP is still vulnerable to getting stuck in sectors whose growth rates are trending downward. This article explains why Technology, Financials, and Energy are the three to watch.I still have reservations about SPGP's strategy and believe its Index is flawed. However, SPGP's fundamentals look better today, so I've decided to upgrade it to a "hold." Andrii Yalanskyi/iStock via Getty Images Investment Thesis I last reviewed the Invesco S&P 500 GARP ETF (SPGP) on May 1, 2025, when I issued it a "sell" rating due to its large disconnect between its historical and estimated earnings growth rates. SinceThis article was written byThe Sunday Investor7.04K FollowersFollowThe Sunday Investor is focused exclusively on U.S. Equity ETFs. He has a strong analytical background, has received a Certificate of Advanced Investment Advice from the Canadian Securities Institute, and has completed all the educational requirements for the Chartered Investment Manager designation.Having covered hundreds of ETFs on Seeking Alpha, The Sunday Investor has developed a complex, proprietary ETF Rankings system which he shares on his website, etf-rankings.com. Nearly 1,000 ETFs receive individual factor scores covering costs, liquidity, risk, size, value, dividends, growth, quality, momentum, and sentiment, which feed into an easy-to-understand composite score from 1-10.
The Sunday Investor is always active in the comments section in his articles - please don't hesitate to reach out via comment in any article or by visiting etf-rankings.com. Happy Investing!Analyst’s Disclosure:I/we have a beneficial long position in the shares of SPY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You