Should Invesco S&P SmallCap 600 Pure Value ETF (RZV) Be on Your Investing Radar?

The Invesco S&P SmallCap 600 Pure Value ETF (RZV) was launched on 03/01/2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $271.34 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueWith more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have 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.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.04%.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.This ETF has heaviest allocation to the Financials sector--about 22.80% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Echostar Corp (SATS) accounts for about 2.27% of total assets, followed by Phinia Inc (PHIN) and Fresh Del Monte Produce Inc (FDP).The top 10 holdings account for about 19.29% of total assets under management.Performance and RiskRZV seeks to match the performance of the S&P SmallCap 600 Pure Value Index before fees and expenses. The S&P SmallCap 600 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index.The ETF return is roughly 11.09% so far this year and is up about 21.07% in the last one year (as of 12/11/2024). In the past 52-week period, it has traded between $96.80 and $119.36.The ETF has a beta of 1.43 and standard deviation of 24.23% for the trailing three-year period, making it a high risk choice in the space. With about 137 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P SmallCap 600 Pure Value 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, RZV is a good option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Avantis U.S. Small Cap Value ETF (AVUV) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While Avantis U.S. Small Cap Value ETF has $15.99 billion in assets, Vanguard Small-Cap Value ETF has $32.65 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 SmallCap 600 Pure Value ETF (RZV): ETF Research Reports EchoStar Corporation (SATS): Free Stock Analysis Report Fresh Del Monte Produce, Inc. (FDP): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports PHINIA Inc. (PHIN): 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