Is Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?

Making its debut on 06/25/2007, smart beta exchange traded fund Invesco FTSE RAFI Developed Markets ex-U.S. ETF (PXF) provides investors broad exposure to the Foreign Large Value ETF 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 work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.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.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.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 $1.80 billion, this makes it one of the larger ETFs in the Foreign Large Value ETF. PXF is managed by Invesco. This particular fund seeks to match the performance of the FTSE RAFI Developed ex-U.S. Index before fees and expenses.The FTSE RAFI Developed ex U.S. 1000 Index is designed to track the performance of the largest developed market equities, excluding the US, 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.Operating expenses on an annual basis are 0.45% for PXF, making it on par with most peer products in the space.PXF's 12-month trailing dividend yield is 3.27%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Shell Plc (SHEL) accounts for about 2.33% of total assets, followed by Totalenergies Se (TTE) and Toyota Motor Corp.The top 10 holdings account for about 11.46% of total assets under management.Performance and RiskThe ETF has added about 6.45% so far this year and is up roughly 12.23% in the last one year (as of 02/13/2025). In the past 52-week period, it has traded between $46.54 and $52.64.The ETF has a beta of 0.90 and standard deviation of 16.51% for the trailing three-year period, making it a medium risk choice in the space. With about 1042 holdings, it effectively diversifies company-specific risk.AlternativesInvesco FTSE RAFI Developed Markets ex-U.S. ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.Dimensional International Value ETF (DFIV) tracks ---------------------------------------- and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Dimensional International Value ETF has $8.82 billion in assets, Schwab Fundamental International Equity ETF has $13.97 billion. DFIV has an expense ratio of 0.27% and FNDF charges 0.25%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF.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 FTSE RAFI Developed Markets ex-U.S. ETF (PXF): ETF Research Reports Schwab Fundamental International Equity ETF (FNDF): ETF Research Reports TotalEnergies SE Sponsored ADR (TTE): Free Stock Analysis Report Dimensional International Value ETF (DFIV): ETF Research Reports Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks