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Is Invesco RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?
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The Invesco RAFI Developed Markets ex-U.S. ETF (PXF - Free Report) made its debut on 06/25/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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, PXF has amassed assets over $2.16 billion, making it one of the larger ETFs in the Foreign Large Value ETF. Before fees and expenses, PXF seeks to match the performance of the FTSE RAFI Developed ex-U.S. Index.
The RAFI Fundamental Select Developed ex US 1000 Index tracks the performance of the largest developed market equities, excluding the US, based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.43%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.01%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Shell Plc (SHEL) accounts for about 2.11% of the fund's total assets, followed by Samsung Electronics Co Ltd and Totalenergies Se (TTE).
PXF's top 10 holdings account for about 11.29% of its total assets under management.
Performance and Risk
The ETF return is roughly 30.26% and is up about 24.57% so far this year and in the past one year (as of 08/25/2025), respectively. PXF has traded between $46.22 and $61.20 during this last 52-week period.
The fund has a beta of 0.82 and standard deviation of 15.70% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1147 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI Developed Markets ex-U.S. ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield ETF has $12.01 billion in assets, Schwab Fundamental International Equity ETF has $17.59 billion. VYMI has an expense ratio of 0.17% and FNDF changes 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF
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 RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?
The Invesco RAFI Developed Markets ex-U.S. ETF (PXF - Free Report) made its debut on 06/25/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Value ETF category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
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, PXF has amassed assets over $2.16 billion, making it one of the larger ETFs in the Foreign Large Value ETF. Before fees and expenses, PXF seeks to match the performance of the FTSE RAFI Developed ex-U.S. Index.
The RAFI Fundamental Select Developed ex US 1000 Index tracks the performance of the largest developed market equities, excluding the US, based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.43%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 3.01%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
Taking into account individual holdings, Shell Plc (SHEL) accounts for about 2.11% of the fund's total assets, followed by Samsung Electronics Co Ltd and Totalenergies Se (TTE).
PXF's top 10 holdings account for about 11.29% of its total assets under management.
Performance and Risk
The ETF return is roughly 30.26% and is up about 24.57% so far this year and in the past one year (as of 08/25/2025), respectively. PXF has traded between $46.22 and $61.20 during this last 52-week period.
The fund has a beta of 0.82 and standard deviation of 15.70% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1147 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI Developed Markets ex-U.S. ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard International High Dividend Yield ETF (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield ETF has $12.01 billion in assets, Schwab Fundamental International Equity ETF has $17.59 billion. VYMI has an expense ratio of 0.17% and FNDF changes 0.25%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF
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.