Is Invesco RAFI Emerging Markets ETF (PXH) a Strong ETF Right Now?

The Invesco RAFI Emerging Markets ETF (PXH) made its debut on 09/27/2007, and is a smart beta exchange traded fund that provides 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.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.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.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 & IndexPXH is managed by Invesco, and this fund has amassed over $1.54 billion, which makes it one of the larger ETFs in the Broad Emerging Market ETFs. Before fees and expenses, this particular fund 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 ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Operating expenses on an annual basis are 0.47% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 3.40%.Sector Exposure and Top HoldingsETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.Taking into account individual holdings, Taiwan Semiconductor Manufacturing Co Ltdaccounts for about 6.04% of the fund's total assets, followed by Alibaba Group Holding Ltd and China Construction Bank Corp.The top 10 holdings account for about 29.85% of total assets under management.Performance and RiskYear-to-date, the Invesco RAFI Emerging Markets ETF has added about 19.06% so far, and was up about 25.26% over the last 12 months (as of 08/11/2025). PXH has traded between $18.80 and $24.36 in this past 52-week period. The ETF has a beta of 0.57 and standard deviation of 17.81% for the trailing three-year period, making it a medium risk choice in the space. With about 439 holdings, it effectively diversifies company-specific risk .AlternativesInvesco 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 FTSE Emerging Markets ETF (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 FTSE Emerging Markets ETF has $94.77 billion in assets, iShares Core MSCI Emerging Markets ETF has $100.39 billion. VWO has an expense ratio of 0.07% 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 ETFsBottom 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 Emerging Markets ETF (PXH): 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