Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider 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 $496.35 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

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus, companies that fall under this category provide a stable and growth-heavy investment.

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. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

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 1.93%.

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 36.2% of the portfolio. Energy and Consumer Discretionary round out the top three.

Looking at individual holdings, Pbf Energy Inc (PBF) accounts for about 4.19% of total assets, followed by Hf Sinclair Corp (DINO) and Macy's Inc (M).

The top 10 holdings account for about 22.28% 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 11.3% so far this year and is up roughly 16.47% in the last one year (as of 09/30/2026). In the past 52-week period, it has traded between $58.42 and $75.86.

The ETF has a beta of 0.97 and standard deviation of 18.16% for the trailing three-year period. With about 80 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 an excellent 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 Morningstar Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.86 billion in assets, Vanguard Morningstar Mid-Cap Value ETF has $23.05 billion. IWS has an expense ratio of 0.23% and VOE charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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.