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

Making its debut on 03/01/2006, smart beta exchange traded fund Invesco S&P MidCap 400 Pure Value ETF (RFV) provides investors broad exposure to the Style Box - Mid Cap Value category of the market.What Are Smart Beta ETFs?Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.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 managed by Invesco, and has been able to amass over $283.76 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV 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.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 RFV, making it on par with most peer products in the space.It has a 12-month trailing dividend yield of 0.88%.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.RFV's heaviest allocation is in the Consumer Discretionary sector, which is about 23.30% of the portfolio. Its Financials and Industrials round out the top three.Taking into account individual holdings, Avnet Inc (AVT) accounts for about 2.81% of the fund's total assets, followed by Mastec Inc (MTZ) and Lithia Motors Inc (LAD).RFV's top 10 holdings account for about 23.66% of its total assets under management.Performance and RiskThe ETF return is roughly 7.53% so far this year and is up about 21.66% in the last one year (as of 11/19/2024). In the past 52-week period, it has traded between $102.76 and $127.28.RFV has a beta of 1.34 and standard deviation of 22.21% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 87 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 $13.84 billion in assets, Vanguard Mid-Cap Value ETF has $18.31 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 Avnet, Inc. (AVT): Free Stock Analysis Report Lithia Motors, Inc. (LAD): Free Stock Analysis Report MasTec, Inc. (MTZ): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks