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) was launched on 06/25/2007, and is a smart beta exchange traded fund designed to offer broad exposure to the Foreign Large Value ETF category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well 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.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $2.16 billion, making it one of the larger ETFs in the Foreign Large Value ETF. This particular fund, 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 ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.Annual operating expenses for PXF are 0.43%, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 3.10%.Sector Exposure and Top HoldingsIt 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, Shell Plc (SHEL) accounts for about 2.01% of the fund's total assets, followed by Samsung Electronics Co Ltd and Hsbc Holdings Plc (HSBA).Its top 10 holdings account for approximately 11.52% of PXF's total assets under management.Performance and RiskThe ETF has added about 33.74% and was up about 29.27% so far this year and in the past one year (as of 10/31/2025), respectively. PXF has traded between $46.22 and $63.03 during this last 52-week period. PXF has a beta of 0.82 and standard deviation of 14.66% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 1146 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 $12.87 billion in assets, Schwab Fundamental International Equity ETF has $18.26 billion. VYMI has an expense ratio of 0.17% 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 ETFBottom 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks