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

A smart beta exchange traded fund, the Invesco S&P MidCap 400 Pure Value ETF (RFV) debuted on 03/01/2006, and offers broad exposure to the Style Box - Mid Cap Value category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.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.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.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexBecause the fund has amassed over $247.73 million, this makes it one of the average sized ETFs in the Style Box - Mid Cap Value. RFV is managed by Invesco. Before fees and expenses, this particular fund 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 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 1.29%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 27.50% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Industrials and Financials round out the top three.Taking into account individual holdings, Concentrix Corp (CNXC) accounts for about 3.49% of the fund's total assets, followed by Td Synnex Corp (SNX) and Goodyear Tire & Rubber Co/the (GT).RFV's top 10 holdings account for about 27.4% of its total assets under management.Performance and RiskYear-to-date, the Invesco S&P MidCap 400 Pure Value ETF has lost about -4.02% so far, and it's up approximately 1.10% over the last 12 months (as of 03/26/2025). RFV has traded between $108.97 and $131.23 in this past 52-week period.The fund has a beta of 1.36 and standard deviation of 21.44% 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 $13.47 billion in assets, Vanguard Mid-Cap Value ETF has $17.53 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 The Goodyear Tire & Rubber Company (GT): Free Stock Analysis Report TD SYNNEX Corporation (SNX): 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks