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.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as 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.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexBecause the fund has amassed over $296.69 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV is managed by Invesco. 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 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 0.35% for RFV, making it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 0.84%.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 RFV, it has heaviest allocation in the Consumer Discretionary sector --about 27.6% of the portfolio --while Energy and Financials round out the top three.Taking into account individual holdings, Hf Sinclair Corp (DINO) accounts for about 4.59% of the fund's total assets, followed by Pbf Energy Inc (PBF) and Macy's Inc (M).The top 10 holdings account for about 31.75% of total assets under management.Performance and RiskSo far this year, RFV return is roughly 7.17%, and is up roughly 1.29% in the last one year (as of 12/09/2025). During this past 52-week period, the fund has traded between $97.97 and $132.13.RFV has a beta of 1.13 and standard deviation of 21.56% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 84 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 $14.1 billion in assets, Vanguard Mid-Cap Value ETF has $19.64 billion. IWS has an expense ratio of 0.23% and VOE changes 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 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 S&P MidCap 400 Pure Value ETF (RFV): 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