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Is Invesco RAFI Emerging Markets ETF (PXH) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Invesco RAFI Emerging Markets ETF (PXH - Free Report) debuted on 09/27/2007, and offers broad exposure to the Broad Emerging Market ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco. PXH has been able to amass assets over $1.95 billion, making it one of the larger ETFs in the Broad Emerging Market ETFs. PXH, before fees and expenses, seeks to match the performance of the FTSE RAFI Emerging Markets Index.
The RAFI Fundamental Select Emerging Markets 350 Index tracks the performance of the largest emerging market 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.
Operating expenses on an annual basis are 0.47% for this ETF, which makes it on par with most peer products in the space.
PXH's 12-month trailing dividend yield is 4.11%.
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.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd (Y84629107) accounts for about 6.1% of total assets, followed by Petroleo Brasileiro Sa - Petrobras (PETR4) and Alibaba Group Holding Ltd.
Its top 10 holdings account for approximately 29.05% of PXH's total assets under management.
Performance and Risk
Year-to-date, the Invesco RAFI Emerging Markets ETF has added about 12.49% so far, and it's up approximately 14.59% over the last 12 months (as of 11/05/2026). PXH has traded between $25.38 $30.30 in this past 52-week period.
PXH has a beta of 0.59 and standard deviation of 17.08% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 396 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI Emerging Markets ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Emerging Markets Stock Index Fund ETF Shares (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard Emerging Markets Stock Index Fund ETF Shares has $118.88 billion in assets, iShares Core MSCI Emerging Markets ETF has $147.38 billion. VWO has an expense ratio of 0.06% and IEMG changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs
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 Emerging Markets ETF (PXH) a Strong ETF Right Now?
A smart beta exchange traded fund, the Invesco RAFI Emerging Markets ETF (PXH - Free Report) debuted on 09/27/2007, and offers broad exposure to the Broad Emerging Market ETFs category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco. PXH has been able to amass assets over $1.95 billion, making it one of the larger ETFs in the Broad Emerging Market ETFs. PXH, before fees and expenses, seeks to match the performance of the FTSE RAFI Emerging Markets Index.
The RAFI Fundamental Select Emerging Markets 350 Index tracks the performance of the largest emerging market 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.
Operating expenses on an annual basis are 0.47% for this ETF, which makes it on par with most peer products in the space.
PXH's 12-month trailing dividend yield is 4.11%.
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.
Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd (Y84629107) accounts for about 6.1% of total assets, followed by Petroleo Brasileiro Sa - Petrobras (PETR4) and Alibaba Group Holding Ltd.
Its top 10 holdings account for approximately 29.05% of PXH's total assets under management.
Performance and Risk
Year-to-date, the Invesco RAFI Emerging Markets ETF has added about 12.49% so far, and it's up approximately 14.59% over the last 12 months (as of 11/05/2026). PXH has traded between $25.38 $30.30 in this past 52-week period.
PXH has a beta of 0.59 and standard deviation of 17.08% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 396 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI Emerging Markets ETF is a reasonable option for investors seeking to outperform the Broad Emerging Market ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard Emerging Markets Stock Index Fund ETF Shares (VWO) tracks FTSE Emerging Markets All Cap China A Inclusion Index and the iShares Core MSCI Emerging Markets ETF (IEMG) tracks MSCI Emerging Markets Investable Market Index. Vanguard Emerging Markets Stock Index Fund ETF Shares has $118.88 billion in assets, iShares Core MSCI Emerging Markets ETF has $147.38 billion. VWO has an expense ratio of 0.06% and IEMG changes 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Broad Emerging Market ETFs
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.