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) debuted on 06/25/2007, and offers broad exposure to the Foreign Large Value ETF category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.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.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.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 managed by Invesco. PXF has been able to amass assets over $2.3 billion, making 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 ExpensesWhen considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.Operating expenses on an annual basis are 0.43% for this ETF, which makes it on par with most peer products in the space.PXF's 12-month trailing dividend yield is 3.62%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Samsung Electronics Co Ltd (Y74718100) accounts for about 2.86% of total assets, followed by Shell Plc (SHEL) and Hsbc Holdings Plc (HSBA).Its top 10 holdings account for approximately 12.62% of PXF's total assets under management.Performance and RiskSo far this year, PXF has added roughly 42.52%, and was up about 42.73% in the last one year (as of 12/31/2025). During this past 52-week period, the fund has traded between $46.22 and $65.87.The fund has a beta of 0.74 and standard deviation of 14.04% for the trailing three-year period, which makes PXF a medium risk choice in this particular 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 $14.33 billion in assets, Schwab Fundamental International Equity ETF has $19.69 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