If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap Value with Momentum ETF (XMVM Quick QuoteXMVM - Free Report) , a passively managed exchange traded fund launched on March 3, 2005.

The fund is sponsored by Invesco. It has amassed assets over $411.26 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. Thus they have a nice balance of growth potential and stability.

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. While value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

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.

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 2.08%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. 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 44% of the portfolio. Consumer Discretionary and Utilities round out the top three.

Looking at individual holdings, Lear Corp (LEA) accounts for about 2.63% of total assets, followed by Brighthouse Financial Inc (BHF) and Td Synnex Corp (SNX).

The top 10 holdings account for about 20.93% of total assets under management.

Performance and Risk

XMVM seeks to match the performance of the S&P MIDCAP 400 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P MidCap 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index.

The ETF has added roughly 1.83% so far this year and is up roughly 23.01% in the last one year (as of 03/25/2026). In the past 52-week period, it has traded between $46.54 and $69.96.

The ETF has a beta of 1.06 and standard deviation of 19.06% for the trailing three-year period. With about 81 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P MidCap Value with Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XMVM is a great option for investors seeking exposure to the Style Box - Mid Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.56 billion in assets, Vanguard Mid-Cap Value Index Fund ETF Shares has $21.21 billion. IWS has an expense ratio of 0.23% and VOE charges 0.05%.

Bottom-Line

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.