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Is Invesco S&P MidCap 400 Pure Value ETF (RFV) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco S&P MidCap 400 Pure Value ETF (RFV - Free Report) debuted on 03/01/2006, and offers broad exposure to the Style Box - Mid Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RFV has amassed assets over $239.42 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV seeks to match the performance of the S&P MidCap 400 Pure Value Index before fees and expenses.
The S&P MidCap 400 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for RFV are 0.35%, which makes it on par with most peer products in the space.
RFV's 12-month trailing dividend yield is 2.05%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 29.40% of the portfolio. Consumer Discretionary and Industrials round out the top three.
Looking at individual holdings, Unum Group (UNM - Free Report) accounts for about 3.76% of total assets, followed by Hf Sinclair Corp (DINO - Free Report) and Reinsurance Group Of America Inc (RGA - Free Report) .
RFV's top 10 holdings account for about 23.68% of its total assets under management.
Performance and Risk
So far this year, RFV has lost about -4.71%, and was up about 0.05% in the last one year (as of 12/22/2022). During this past 52-week period, the fund has traded between $79.72 and $100.72.
The ETF has a beta of 1.39 and standard deviation of 34.27% for the trailing three-year period, making it a high risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell MidCap Value ETF (IWS - Free Report) tracks Russell MidCap Value Index and the Vanguard MidCap Value ETF (VOE - Free Report) tracks CRSP U.S. Mid Cap Value Index. IShares Russell MidCap Value ETF has $13.22 billion in assets, Vanguard MidCap Value ETF has $16.14 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value.
Bottom Line
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.
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Is Invesco S&P MidCap 400 Pure Value ETF (RFV) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco S&P MidCap 400 Pure Value ETF (RFV - Free Report) debuted on 03/01/2006, and offers broad exposure to the Style Box - Mid Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Managed by Invesco, RFV has amassed assets over $239.42 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV seeks to match the performance of the S&P MidCap 400 Pure Value Index before fees and expenses.
The S&P MidCap 400 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for RFV are 0.35%, which makes it on par with most peer products in the space.
RFV's 12-month trailing dividend yield is 2.05%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Financials sector - about 29.40% of the portfolio. Consumer Discretionary and Industrials round out the top three.
Looking at individual holdings, Unum Group (UNM - Free Report) accounts for about 3.76% of total assets, followed by Hf Sinclair Corp (DINO - Free Report) and Reinsurance Group Of America Inc (RGA - Free Report) .
RFV's top 10 holdings account for about 23.68% of its total assets under management.
Performance and Risk
So far this year, RFV has lost about -4.71%, and was up about 0.05% in the last one year (as of 12/22/2022). During this past 52-week period, the fund has traded between $79.72 and $100.72.
The ETF has a beta of 1.39 and standard deviation of 34.27% for the trailing three-year period, making it a high risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P MidCap 400 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell MidCap Value ETF (IWS - Free Report) tracks Russell MidCap Value Index and the Vanguard MidCap Value ETF (VOE - Free Report) tracks CRSP U.S. Mid Cap Value Index. IShares Russell MidCap Value ETF has $13.22 billion in assets, Vanguard MidCap Value ETF has $16.14 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Mid Cap Value.
Bottom Line
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.