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

The Invesco S&P MidCap 400 Pure Value ETF (RFV) was launched on 03/01/2006, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Mid Cap Value category of the market.What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: 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, and has been able to amass over $285.33 million, which makes it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV, 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 this ETF, which makes it on par with most peer products in the space.It's 12-month trailing dividend yield comes in at 0.93%.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.This ETF has heaviest allocation in the Consumer Discretionary sector - about 26.70% of the portfolio. Industrials and Energy round out the top three.Taking into account individual holdings, Concentrix Corp (CNXC) accounts for about 3.52% of the fund's total assets, followed by Hf Sinclair Corp (DINO) and Pbf Energy Inc (PBF).Its top 10 holdings account for approximately 26.86% of RFV's total assets under management.Performance and RiskThe ETF has added roughly 5.65% so far this year and is up about 16.91% in the last one year (as of 01/22/2025). In the past 52-week period, it has traded between $108.97 and $131.23.The fund has a beta of 1.36 and standard deviation of 21.78% for the trailing three-year period, which makes RFV a high risk choice in this particular space. With about 89 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 $14.17 billion in assets, Vanguard Mid-Cap Value ETF has $18.04 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 PBF Energy Inc. (PBF): Free Stock Analysis Report Concentrix Corporation (CNXC): Free Stock Analysis Report Vanguard Mid-Cap Value ETF (VOE): ETF Research Reports iShares Russell Mid-Cap Value ETF (IWS): ETF Research Reports HF Sinclair Corporation (DINO): 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