Is Invesco RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?

The Invesco RAFI Developed Markets ex-U.S. ETF (PXF) made its debut on 06/25/2007, and is a smart beta exchange traded fund that provides broad exposure to the Foreign Large Value ETF category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the 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.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.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.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 & IndexBecause the fund has amassed over $2.03 billion, this makes it one of the larger ETFs in the Foreign Large Value ETF. PXF is managed by Invesco. This particular fund seeks to match the performance of the FTSE RAFI Developed ex-U.S. Index before fees and expenses.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 ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.With on par with most peer products in the space, this ETF has annual operating expenses of 0.43%.It's 12-month trailing dividend yield comes in at 3.09%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.Looking at individual holdings, Shell Plc (SHEL) accounts for about 2.11% of total assets, followed by Samsung Electronics Co Ltd and Hsbc Holdings Plc (HSBA).Its top 10 holdings account for approximately 11.13% of PXF's total assets under management.Performance and RiskThe ETF has added about 20.39% and is up about 20.89% so far this year and in the past one year (as of 06/17/2025), respectively. PXF has traded between $46.22 and $57.51 during this last 52-week period.The fund has a beta of 0.81 and standard deviation of 16.15% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1149 holdings, it effectively diversifies company-specific risk.AlternativesInvesco 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 ETF (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 ETF has $10.57 billion in assets, Schwab Fundamental International Equity ETF has $16.21 billion. VYMI has an expense ratio of 0.17% and FNDF charges 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 LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco RAFI Developed Markets ex-U.S. ETF (PXF): ETF Research Reports Vanguard International High Dividend Yield ETF (VYMI): ETF Research Reports Schwab Fundamental International Equity ETF (FNDF): ETF Research Reports Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks