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Is Invesco RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco RAFI Developed Markets ex-U.S. ETF (PXF - Free Report) debuted on 06/25/2007, and offers broad exposure to the Foreign Large Value ETF 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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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 managed by Invesco, and has been able to amass over $2.76 billion, which makes it one of the larger ETFs in the Foreign Large Value ETF. PXF, before fees and expenses, 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
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.
Operating expenses on an annual basis are 0.43% for PXF, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.29%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Samsung Electronics Co Ltd (Y74718100) accounts for about 4.51% of the fund's total assets, followed by Shell Plc (SHEL) and Totalenergies Se (TTE).
Its top 10 holdings account for approximately 15.41% of PXF's total assets under management.
Performance and Risk
So far this year, PXF has added about 12.56%, and is up roughly 39.74% in the last one year (as of 05/05/2026). During this past 52-week period, the fund has traded between $53.94 and $76.15.
The fund has a beta of 0.72 and standard deviation of 14.65% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1039 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 Index Fund ETF Shares (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 Index Fund ETF Shares has $18.62 billion in assets, Schwab Fundamental International Equity ETF has $22.94 billion. VYMI has an expense ratio of 0.07% 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?
A smart beta exchange traded fund, the Invesco RAFI Developed Markets ex-U.S. ETF (PXF - Free Report) debuted on 06/25/2007, and offers broad exposure to the Foreign Large Value ETF 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.
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.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
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 managed by Invesco, and has been able to amass over $2.76 billion, which makes it one of the larger ETFs in the Foreign Large Value ETF. PXF, before fees and expenses, 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
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.
Operating expenses on an annual basis are 0.43% for PXF, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 3.29%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Samsung Electronics Co Ltd (Y74718100) accounts for about 4.51% of the fund's total assets, followed by Shell Plc (SHEL) and Totalenergies Se (TTE).
Its top 10 holdings account for approximately 15.41% of PXF's total assets under management.
Performance and Risk
So far this year, PXF has added about 12.56%, and is up roughly 39.74% in the last one year (as of 05/05/2026). During this past 52-week period, the fund has traded between $53.94 and $76.15.
The fund has a beta of 0.72 and standard deviation of 14.65% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1039 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 Index Fund ETF Shares (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 Index Fund ETF Shares has $18.62 billion in assets, Schwab Fundamental International Equity ETF has $22.94 billion. VYMI has an expense ratio of 0.07% 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.