Should Invesco S&P MidCap 400 Revenue ETF (RWK) Be on Your Investing Radar?

The Invesco S&P MidCap 400 Revenue ETF (RWK) was launched on 02/22/2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $925.04 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 ValueMid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus they have a nice balance of growth potential and stability.While value stocks have lower than average price-to-earnings and price-to-book ratios, they also have lower than average sales and earnings growth rates. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.39%, making it one of the more expensive products in the space.It has a 12-month trailing dividend yield of 1.06%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector--about 22.50% of the portfolio. Consumer Discretionary and Financials round out the top three.Looking at individual holdings, Performance Food Group Co (PFGC) accounts for about 2.64% of total assets, followed by Td Synnex Corp (SNX) and American Airlines Group Inc (AAL).The top 10 holdings account for about 17.44% of total assets under management.Performance and RiskRWK seeks to match the performance of the OFI Revenue Weighted Mid Cap Index before fees and expenses. The S&P MidCap 400 Revenue-Weighted Index is constructed using a rules-based methodology that re-weights the constituent securities of the S&P MidCap 400 Index according to the revenue earned by the companies in the parent index, subject to a maximum 5% per company weighting.The ETF has added roughly 5.34% so far this year and was up about 19.79% in the last one year (as of 01/24/2025). In the past 52-week period, it has traded between $103.09 and $126.49.The ETF has a beta of 1.27 and standard deviation of 21.33% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap 400 Revenue 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, RWK 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 $14.07 billion in assets, Vanguard Mid-Cap Value ETF has $17.88 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.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 Revenue ETF (RWK): ETF Research Reports TD SYNNEX Corporation (SNX): Free Stock Analysis Report American Airlines Group Inc. (AAL): Free Stock Analysis Report Performance Food Group Company (PFGC): 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