Should Invesco S&P MidCap 400 Pure Value ETF (RFV) Be on Your Investing Radar?

Launched on March 1, 2006, the Invesco S&P MidCap 400 Pure Value ETF (RFV) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $282.56 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueCompared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners. CostsInvestors 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.Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.84%.Sector Exposure and Top HoldingsETFs offer a 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.This ETF has heaviest allocation to the Consumer Discretionary sector -- about 26.5% of the portfolio. Industrials and Energy round out the top three.Looking at individual holdings, Hf Sinclair Corp (DINO) accounts for about 4.22% of total assets, followed by Concentrix Corp (CNXC) and Pbf Energy Inc (PBF).The top 10 holdings account for about 31.05% of total assets under management.Performance and RiskRFV seeks to match the performance of the S&P MidCap 400 Pure Value Index before fees and expenses. 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.The ETF return is roughly 6.9% so far this year and is up roughly 11.49% in the last one year (as of 10/03/2025). In the past 52-week period, it has traded between $97.97 and $132.13.The ETF has a beta of 1.16 and standard deviation of 22% for the trailing three-year period, making it 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 carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RFV is a reasonable option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $14.17 billion in assets, Vanguard Mid-Cap Value ETF has $19.12 billion. IWS has an expense ratio of 0.23% and VOE charges 0.07%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.To 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