Is Invesco S&P SmallCap 600 Pure Value ETF (RZV) a Strong ETF Right Now?

Launched on 03/01/2006, the Invesco S&P SmallCap 600 Pure Value ETF (RZV) is a smart beta exchange traded fund offering broad exposure to the Style Box - Small Cap Value category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.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.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.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexThe fund is managed by Invesco. RZV has been able to amass assets over $228.53 million, making it one of the average sized ETFs in the Style Box - Small Cap Value. RZV, before fees and expenses, seeks to match the performance of the S&P SmallCap 600 Pure Value Index.The S&P SmallCap 600 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index.Cost & Other ExpensesCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are 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.RZV's 12-month trailing dividend yield is 1.37%.Sector Exposure and Top HoldingsMost ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.RZV's heaviest allocation is in the Consumer Discretionary sector, which is about 26.3% of the portfolio. Its Financials and Energy round out the top three.Taking into account individual holdings, Viasat Inc (VSAT) accounts for about 4.2% of the fund's total assets, followed by Par Pacific Holdings Inc (PARR) and Spartannash Co (SPTN).Its top 10 holdings account for approximately 21.92% of RZV's total assets under management.Performance and RiskThe ETF return is roughly 6.48% and it's up approximately 9.06% so far this year and in the past one year (as of 09/23/2025), respectively. RZV has traded between $83.11 and $120.22 during this last 52-week period. The ETF has a beta of 1.21 and standard deviation of 24.45% for the trailing three-year period, making it a high risk choice in the space. With about 145 holdings, it effectively diversifies company-specific risk .AlternativesInvesco S&P SmallCap 600 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.iShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard Small-Cap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $12.04 billion in assets, Vanguard Small-Cap Value ETF has $31.64 billion. IWN has an expense ratio of 0.24% and VBR 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 - Small 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 SmallCap 600 Pure Value ETF (RZV): 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