Is Invesco S&P MidCap 400 Pure Value ETF (RFV) a Strong ETF Right Now?

Launched on 03/01/2006, the Invesco S&P MidCap 400 Pure Value ETF (RFV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Mid Cap Value 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.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.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.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 $238.19 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. This particular fund, before fees and expenses, seeks to match the performance of the S&P MidCap 400 Pure Value Index.The S&P MidCap 400 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.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 0.35% for this ETF, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 1.29%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.For RFV, it has heaviest allocation in the Consumer Discretionary sector --about 26.20% of the portfolio --while Industrials and Financials round out the top three.Taking into account individual holdings, Concentrix Corp (CNXC) accounts for about 4.38% of the fund's total assets, followed by Goodyear Tire & Rubber Co/the (GT) and United States Steel Corp (X).The top 10 holdings account for about 29.6% of total assets under management.Performance and RiskThe ETF has lost about -4.47% so far this year and is up about 1.43% in the last one year (as of 05/27/2025). In the past 52-week period, it has traded between $97.97 and $131.23.The fund has a beta of 1.18 and standard deviation of 22.74% for the trailing three-year period, which makes RFV a high risk choice in this particular space. With about 85 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap 400 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.IShares Russell Mid-Cap Value ETF (IWS) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. IShares Russell Mid-Cap Value ETF has $12.95 billion in assets, Vanguard Mid-Cap Value ETF has $17.34 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.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 - Mid Cap Value.Bottom 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>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 S&P MidCap 400 Pure Value ETF (RFV): ETF Research Reports United States Steel Corporation (X): Free Stock Analysis Report The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report Concentrix Corporation (CNXC): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): 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