Is Invesco RAFI US 1000 ETF (PRF) a Strong ETF Right Now?

Launched on 12/19/2005, the Invesco RAFI US 1000 ETF (PRF) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value 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.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.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.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 & IndexPRF is managed by Invesco, and this fund has amassed over $8.09 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, PRF seeks to match the performance of the FTSE RAFI US 1000 Index.The RAFI Fundamental Select US 1000 Index tracks the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.33%, making it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 1.69%.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.For PRF, it has heaviest allocation in the Financials sector --about 20.8% of the portfolio --while Information Technology and Healthcare round out the top three.Looking at individual holdings, Apple Inc (AAPL) accounts for about 3.2% of total assets, followed by Alphabet Inc (GOOGL) and Microsoft Corp (MSFT).PRF's top 10 holdings account for about 20.84% of its total assets under management.Performance and RiskSo far this year, PRF has added about 10.72%, and is up about 12.96% in the last one year (as of 08/28/2025). During this past 52-week period, the fund has traded between $35.77 and $44.30.The ETF has a beta of 0.91 and standard deviation of 14.94% for the trailing three-year period, making it a medium risk choice in the space. With about 1087 holdings, it effectively diversifies company-specific risk .AlternativesInvesco RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $72.46 billion in assets, Vanguard Value ETF has $144.04 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.04%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap ValueBottom 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 US 1000 ETF (PRF): 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