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Is Invesco RAFI US 1500 Small-Mid ETF (PRFZ) a Strong ETF Right Now?
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The Invesco RAFI US 1500 Small-Mid ETF (PRFZ - Free Report) made its debut on 09/20/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend 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.
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.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $2.72 billion, making it one of the larger ETFs in the Style Box - Small Cap Blend. PRFZ, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1500 Small-Mid Index.
The RAFI Fundamental Select US 1500 Index tracks the performance of small and medium-sized US companies, based on the four fundamental measures of size: book value, cash flow, sales and dividends.
Cost & Other Expenses
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 cousins, other things remaining the same.
Annual operating expenses for PRFZ are 0.34%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.91%.
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 in the Healthcare sector - about 18.3% of the portfolio. Industrials and Information Technology round out the top three.
Taking into account individual holdings, Opendoor Technologies Inc (OPEN) accounts for about 0.73% of the fund's total assets, followed by Roivant Sciences Ltd (ROIV) and Advanced Energy Industries Inc (AEIS).
Its top 10 holdings account for approximately 5.04% of PRFZ's total assets under management.
Performance and Risk
The ETF has gained about 4.38% and it's up approximately 39.45% so far this year and in the past one year (as of 04/13/2026), respectively. PRFZ has traded between $34.55 and $49.73 during this last 52-week period.
The ETF has a beta of 1.07 and standard deviation of 20.17% for the trailing three-year period, making it a medium risk choice in the space. With about 1410 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI US 1500 Small-Mid ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Small-Cap Index Fund ETF Shares (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Small-Cap Index Fund ETF Shares has $73.46 billion in assets, iShares Core S&P Small-Cap ETF has $96.54 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
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 - Small Cap Blend
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 1500 Small-Mid ETF (PRFZ) a Strong ETF Right Now?
The Invesco RAFI US 1500 Small-Mid ETF (PRFZ - Free Report) made its debut on 09/20/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Small Cap Blend 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.
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.
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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $2.72 billion, making it one of the larger ETFs in the Style Box - Small Cap Blend. PRFZ, before fees and expenses, seeks to match the performance of the FTSE RAFI US 1500 Small-Mid Index.
The RAFI Fundamental Select US 1500 Index tracks the performance of small and medium-sized US companies, based on the four fundamental measures of size: book value, cash flow, sales and dividends.
Cost & Other Expenses
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 cousins, other things remaining the same.
Annual operating expenses for PRFZ are 0.34%, which makes it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 0.91%.
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 in the Healthcare sector - about 18.3% of the portfolio. Industrials and Information Technology round out the top three.
Taking into account individual holdings, Opendoor Technologies Inc (OPEN) accounts for about 0.73% of the fund's total assets, followed by Roivant Sciences Ltd (ROIV) and Advanced Energy Industries Inc (AEIS).
Its top 10 holdings account for approximately 5.04% of PRFZ's total assets under management.
Performance and Risk
The ETF has gained about 4.38% and it's up approximately 39.45% so far this year and in the past one year (as of 04/13/2026), respectively. PRFZ has traded between $34.55 and $49.73 during this last 52-week period.
The ETF has a beta of 1.07 and standard deviation of 20.17% for the trailing three-year period, making it a medium risk choice in the space. With about 1410 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI US 1500 Small-Mid ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Small-Cap Index Fund ETF Shares (VB) tracks CRSP US Small Cap Index and the iShares Core S&P Small-Cap ETF (IJR) tracks S&P SmallCap 600 Index. Vanguard Small-Cap Index Fund ETF Shares has $73.46 billion in assets, iShares Core S&P Small-Cap ETF has $96.54 billion. VB has an expense ratio of 0.03% and IJR changes 0.06%.
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 - Small Cap Blend
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.