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Is Invesco RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
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The Invesco RAFI US 1000 ETF (PRF - Free Report) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $8.31 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. PRF, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index.
The RAFI Fundamental Select US 1000 Index tracks the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.33%.
The fund has a 12-month trailing dividend yield of 1.64%.
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.
PRF's heaviest allocation is in the Financials sector, which is about 20.4% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc (GOOGL) accounts for about 3.31% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
PRF's top 10 holdings account for about 21.18% of its total assets under management.
Performance and Risk
The ETF has gained about 15.14% so far this year and was up about 14.77% in the last one year (as of 10/30/2025). In the past 52-week period, it has traded between $35.77 and $46.26
PRF has a beta of 0.92 and standard deviation of 13.92% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1083 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $69.19 billion in assets, Vanguard Value ETF has $148.54 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
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 - Large 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 RAFI US 1000 ETF (PRF) a Strong ETF Right Now?
The Invesco RAFI US 1000 ETF (PRF - Free Report) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
A good option for investors who believe in market efficiency, market cap weighted indexes offer 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by Invesco, and has been able to amass over $8.31 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. PRF, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1000 Index.
The RAFI Fundamental Select US 1000 Index tracks the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.33%.
The fund has a 12-month trailing dividend yield of 1.64%.
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.
PRF's heaviest allocation is in the Financials sector, which is about 20.4% of the portfolio. Its Information Technology and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc (GOOGL) accounts for about 3.31% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
PRF's top 10 holdings account for about 21.18% of its total assets under management.
Performance and Risk
The ETF has gained about 15.14% so far this year and was up about 14.77% in the last one year (as of 10/30/2025). In the past 52-week period, it has traded between $35.77 and $46.26
PRF has a beta of 0.92 and standard deviation of 13.92% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1083 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $69.19 billion in assets, Vanguard Value ETF has $148.54 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.
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 - Large 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.