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Should Invesco S&P Ultra Dividend Revenue ETF (RDIV) Be on Your Investing Radar?

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If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the Invesco S&P Ultra Dividend Revenue ETF (RDIV - Free Report) , a passively managed exchange traded fund launched on 10/01/2013.

The fund is sponsored by Invesco. It has amassed assets over $673.48 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have 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.


Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

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 4.64%.

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 27.60% of the portfolio. Materials and Utilities round out the top three.

Looking at individual holdings, Intel Corp (INTC - Free Report) accounts for about 6.21% of total assets, followed by Lyondellbasell Industries Nv (LYB - Free Report) and Dow Inc (DOW - Free Report) .

The top 10 holdings account for about 51.63% of total assets under management.

Performance and Risk

RDIV seeks to match the performance of the OFI Revenue Weighted Ultra Dividend Index before fees and expenses. The S&P 900 Dividend Revenue-Weighted Index is constructed using a rules-based methodology that starts with the S&P 900 Index, subject to a maximum 5% per company weighting.

The ETF has lost about -10.87% so far this year and is down about -7.55% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $34.73 and $47.80.

The ETF has a beta of 1.12 and standard deviation of 20.43% for the trailing three-year period, making it a medium risk choice in the space. With about 59 holdings, it effectively diversifies company-specific risk.


Invesco S&P Ultra Dividend Revenue ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RDIV is a good option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 1000 Value ETF (IWD - Free Report) and the Vanguard Value ETF (VTV - Free Report) track a similar index. While iShares Russell 1000 Value ETF has $48.32 billion in assets, Vanguard Value ETF has $97.38 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.


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.

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