The Invesco S&P MidCap Value with Momentum ETF (
XMVM Quick Quote XMVM - Free Report) was launched on 03/03/2005, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $200.66 million, making it one of the smaller ETFs attempting to match the Mid Cap Value segment of the US equity market.
Why Mid Cap Value
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.39%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.81%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 35.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Goodyear Tire & Rubber Co/the (
GT Quick Quote GT - Free Report) accounts for about 2.73% of total assets, followed by United States Steel Corp ( X Quick Quote X - Free Report) and Brighthouse Financial Inc ( BHF Quick Quote BHF - Free Report) .
The top 10 holdings account for about 21.71% of total assets under management.
Performance and Risk
XMVM seeks to match the performance of the S&P MIDCAP 400 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P MidCap 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index.
The ETF has lost about -11.58% so far this year and is down about -2.34% in the last one year (as of 08/05/2022). In the past 52-week period, it has traded between $38.76 and $50.28.
The ETF has a beta of 1.12 and standard deviation of 32.27% for the trailing three-year period. With about 82 holdings, it effectively diversifies company-specific risk.
Invesco S&P MidCap Value with Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XMVM is an excellent option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell MidCap Value ETF (
IWS Quick Quote IWS - Free Report) and the Vanguard MidCap Value ETF ( VOE Quick Quote VOE - Free Report) track a similar index. While iShares Russell MidCap Value ETF has $13.34 billion in assets, Vanguard MidCap Value ETF has $15.79 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%. Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit
Zacks ETF Center.