Is Invesco S&P MidCap 400 Pure Growth ETF (RFG) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 08 2024
0mins
Should l Buy DUOL?
Source: NASDAQ.COM
Overview of Invesco S&P MidCap 400 Pure Growth ETF: The Invesco S&P MidCap 400 Pure Growth ETF (RFG), launched in 2006, focuses on mid-cap growth stocks and has approximately $331.85 million in assets, with a 0.35% expense ratio and a 12-month trailing dividend yield of 0.56%.
Performance and Comparison with Other ETFs: RFG has shown a 19.12% increase over the past year and is considered a medium-risk investment; however, investors may find cheaper alternatives like Vanguard Mid-Cap Growth ETF (VOT) and iShares Russell Mid-Cap Growth ETF (IWP) that offer lower expense ratios and potentially better returns.
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Analyst Views on DUOL
Wall Street analysts forecast DUOL stock price to rise
17 Analyst Rating
10 Buy
6 Hold
1 Sell
Moderate Buy
Current: 112.050
Low
160.00
Averages
260.36
High
330.00
Current: 112.050
Low
160.00
Averages
260.36
High
330.00
About DUOL
Duolingo, Inc. is a technology company. The Company is engaged in offering a mobile learning platform, as well as a digital English language proficiency assessment exam. It operates a freemium business model, namely, the app and the Website are accessible free of charge, although Duolingo also offers premium services for a subscription fee. Its solutions consist of the Duolingo App, Super Duolingo, Duolingo Max, Duolingo English Test: AI-Driven Language Assessment, Duolingo for Schools, and Duolingo ABC. The Duolingo App offers courses in over 40 different languages, including Spanish, English, French, German, Italian, Portuguese, Japanese and Chinese. Duolingo can also be accessed on desktop computers via a Web browser. Its subscription offering, Super Duolingo, offers learners additional features to enhance their learning experience. The Duolingo English Test is an online, on-demand, high-stakes English proficiency assessment. It also operates an animation and motion design studio.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- User and Revenue Growth: Duolingo surpassed 50 million daily active users and $1 billion in annual revenue in 2025, demonstrating strong market demand and a solid user base, further solidifying its leadership in the language learning market.
- Profitability Improvement: With an increase in paid subscribers and gross margins exceeding 70%, Duolingo's profitability has significantly strengthened, indicating the sustainability of its business model and attracting more investor interest.
- Stability of Growth: Although user growth is moderating, maintaining annual revenue growth above 20% would enhance the company's profitability, reflecting its successful transition from a high-growth app to a stable subscription platform.
- Product-Driven Growth: Duolingo's growth relies primarily on its product's natural appeal rather than aggressive marketing spending, making this product-led growth model more sustainable and reducing the risk of user attrition due to promotional activities.
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- User Growth Trends: Duolingo surpassed 50 million daily active users and over $1 billion in annual revenue in 2025; while growth may moderate, maintaining a stable revenue growth of 20% or more annually will ensure strong profitability and market competitiveness.
- Paid Subscriber Expansion: The growth rate of paid subscribers outpaces total user growth, indicating significant progress in monetization; if this trend continues, it will further solidify Duolingo's leadership position in the edtech sector.
- Operating Cost Control: With gross margins exceeding 70%, Duolingo can maintain profitability even if revenue growth slows, as operating costs do not need to rise at the same pace, ensuring long-term financial health.
- Product-Led Growth: Duolingo's growth is primarily driven by its product's inherent appeal rather than aggressive marketing spend, making this product-led growth model more sustainable and reducing the risk of user attrition due to market fluctuations.
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- Real-Time Translation Feature: T-Mobile's newly launched feature provides real-time translation during calls in over 50 languages, embedded directly into its network infrastructure, enhancing user call experiences and potentially reshaping the language service market landscape.
- Impact on Duolingo: Following T-Mobile's announcement, Duolingo's shares plummeted over 10% on Wednesday to a 52-week low of $107.25, indicating market concerns about its competitive viability, despite the company's focus on language learning rather than translation.
- Market Reaction: Retail sentiment on Stocktwits regarding DUOL remained neutral over the past 24 hours, although some users labeled the selloff as 'stupid,' arguing that Duolingo is a learning app, not a translation tool, reflecting confusion about its market positioning.
- Leadership Changes: Duolingo is undergoing leadership changes as current CFO Matt Skaruppa is set to step down on February 23, 2026, with Board Member Gillian Munson taking over, which may influence the company's future strategic direction.
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- Stock Price Crash: Duolingo's stock price faced a significant decline as of February 3, 2026, yet the company's revenue and user engagement continue to rise, indicating a potential misjudgment of its future prospects by the market.
- Revenue Growth: Despite the stock price drop, Duolingo's revenue is still on the rise, suggesting that its core business maintains strong market demand, potentially offering a buying opportunity for investors.
- Free Cash Flow Improvement: The company's free cash flow is consistently increasing, reflecting enhanced operational efficiency and successful cost control, which lays a solid foundation for future investments and expansion.
- User Engagement Increase: The rise in user engagement not only strengthens Duolingo's competitive position in the market but may also support its long-term growth, even though the stock has underperformed in the short term.
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- Stock Price Drop: Duolingo's stock price was crushed on February 3, 2026, yet its revenue and user engagement continue to rise, indicating a potential undervaluation of its future prospects in the market.
- Cash Flow Growth: The company's free cash flow is on the rise, suggesting improvements in operational efficiency and profitability, which could yield potential returns for long-term investors despite the stock decline.
- Market Expectation Adjustment: The analyst team noted that Duolingo did not make the current list of top stocks, reflecting a cautious market sentiment regarding its future performance, which may impact investor confidence.
- Investment Opportunity Assessment: Despite facing challenges, the video analysis suggests that the current sell-off may present a rare buying opportunity for investors, especially as long-term growth potential becomes increasingly evident.
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