Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the Invesco S&P SmallCap 600 Pure Value ETF (RZV Quick QuoteRZV - Free Report) is a passively managed exchange traded fund launched on 03/01/2006.

The fund is sponsored by Invesco. It has amassed assets over $200.57 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.

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. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

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 this ETF are 0.35%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.94%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Consumer Discretionary sector--about 25.20% of the portfolio. Financials and Consumer Staples round out the top three.

Looking at individual holdings, Spartannash Co (SPTN Quick QuoteSPTN - Free Report) accounts for about 1.99% of total assets, followed by Proassurance Corp (PRA Quick QuotePRA - Free Report) and Par Pacific Holdings Inc (PARR Quick QuotePARR - Free Report) .

The top 10 holdings account for about 16.48% of total assets under management.

Performance and Risk

RZV seeks to match the performance of the S&P SmallCap 600 Pure Value Index before fees and expenses. The S&P SmallCap 600 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index.

The ETF has lost about -9.94% so far this year and is down about -3.25% in the last one year (as of 05/14/2025). In the past 52-week period, it has traded between $83.11 and $119.36.

The ETF has a beta of 1.20 and standard deviation of 25.18% for the trailing three-year period, making it a high risk choice in the space. With about 147 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P SmallCap 600 Pure Value 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, RZV is a reasonable option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Avantis U.S. Small Cap Value ETF (AVUV Quick QuoteAVUV - Free Report) and the Vanguard Small-Cap Value ETF (VBR Quick QuoteVBR - Free Report) track a similar index. While Avantis U.S. Small Cap Value ETF has $15.59 billion in assets, Vanguard Small-Cap Value ETF has $29.43 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

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.