Should Invesco S&P MidCap Value with Momentum ETF (XMVM) Be on Your Investing Radar?

If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap Value with Momentum ETF (XMVM), a passively managed exchange traded fund launched on 03/03/2005.The fund is sponsored by Invesco. It has amassed assets over $280.53 million, making it one of the smaller ETFs attempting to match the Mid Cap Value segment of the US equity market.Why Mid Cap ValueCompared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. While 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.CostsSince 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.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 1.26%.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 Financials sector--about 37.10% of the portfolio. Consumer Discretionary and Energy round out the top three.Looking at individual holdings, Lithia Motors Inc (LAD) accounts for about 2.72% of total assets, followed by Avnet Inc (AVT) and Arrow Electronics Inc (ARW).The top 10 holdings account for about 19.82% of total assets under management.Performance and RiskXMVM seeks to match the performance of the S&P MIDCAP 400 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P MidCap 400 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell Midcap Index.The ETF has added about 20.98% so far this year and was up about 35.45% in the last one year (as of 11/07/2024). In the past 52-week period, it has traded between $43.85 and $60.33.The ETF has a beta of 1.16 and standard deviation of 22.53% for the trailing three-year period. With about 82 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P MidCap Value with Momentum 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, XMVM 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 $13.93 billion in assets, Vanguard Mid-Cap Value ETF has $18.40 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 Value with Momentum ETF (XMVM): ETF Research Reports Avnet, Inc. (AVT): Free Stock Analysis Report Arrow Electronics, Inc. (ARW): Free Stock Analysis Report Lithia Motors, Inc. (LAD): 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