Should Invesco S&P SmallCap 600 Revenue ETF (RWJ) Be on Your Investing Radar?

If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the Invesco S&P SmallCap 600 Revenue ETF (RWJ), a passively managed exchange traded fund launched on 02/22/2008.The fund is sponsored by Invesco. It has amassed assets over $1.72 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.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%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.17%.Sector Exposure and Top HoldingsETFs offer a 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 to the Consumer Discretionary sector--about 24% of the portfolio. Industrials and Financials round out the top three.Looking at individual holdings, United Natural Foods Inc (UNFI) accounts for about 3.36% of total assets, followed by World Kinect Corp (WKC) and Echostar Corp (SATS).The top 10 holdings account for about 16.49% of total assets under management.Performance and RiskRWJ seeks to match the performance of the OFI Revenue Weighted Small Cap Index before fees and expenses. The S&P SmallCap 600 Revenue-Weighted Index is constructed using a rules-based methodology that re-weights the constituent securities of the S&P SmallCap 600 Index according to the revenue earned by the companies in the parent index, subject to a maximum 5% per company weighting.The ETF has lost about -1.90% so far this year and is up about 13.28% in the last one year (as of 01/13/2025). In the past 52-week period, it has traded between $38.56 and $49.46.The ETF has a beta of 1.27 and standard deviation of 23.78% for the trailing three-year period, making it a high risk choice in the space. With about 593 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P SmallCap 600 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, RWJ is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $70.23 billion in assets, iShares Core S&P Small-Cap ETF has $85.82 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.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 SmallCap 600 Revenue ETF (RWJ): ETF Research Reports EchoStar Corporation (SATS): Free Stock Analysis Report United Natural Foods, Inc. (UNFI): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports World Kinect Corporation (WKC): 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