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?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.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.While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $1.62 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 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 PXH, making it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 3.44%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Taiwan Semiconductor Manufacturing Co Ltd accounts for about 6.03% of total assets, followed by Alibaba Group Holding Ltd and Tencent Holdings Ltd.The top 10 holdings account for about 31.13% of total assets under management.Performance and RiskThe ETF has gained about 25.89% so far this year and is up roughly 17% in the last one year (as of 10/14/2025). In the past 52-week period, it has traded between $18.80 and $25.86PXH has a beta of 0.60 and standard deviation of 17.58% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 438 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 $102.18 billion in assets, iShares Core MSCI Emerging Markets ETF has $110.59 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