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

Launched on 03/03/2005, the Invesco S&P SmallCap Value with Momentum ETF (XSVM) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by Invesco. It has amassed assets over $866.18 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.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. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.36%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.54%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 34.80% of the portfolio. Industrials and Consumer Discretionary round out the top three.Looking at individual holdings, Stonex Group Inc (SNEX) accounts for about 1.84% of total assets, followed by Kelly Services Inc (KELYA) and Jackson Financial Inc (JXN).The top 10 holdings account for about 15.45% of total assets under management.Performance and RiskXSVM seeks to match the performance of the S&P 600 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P 600 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell 2000 Index.The ETF has gained about 10.07% so far this year and is up roughly 18.87% in the last one year (as of 12/06/2024). In the past 52-week period, it has traded between $50.37 and $60.64.The ETF has a beta of 1.24 and standard deviation of 23.14% for the trailing three-year period. With about 116 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P SmallCap 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, XSVM is a sufficient 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 $15.96 billion in assets, Vanguard Small-Cap Value ETF has $33.04 billion. AVUV has an expense ratio of 0.25% and VBR charges 0.07%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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 Value with Momentum ETF (XSVM): ETF Research Reports Kelly Services, Inc. (KELYA): Free Stock Analysis Report Vanguard Small-Cap Value ETF (VBR): ETF Research Reports Avantis U.S. Small Cap Value ETF (AVUV): ETF Research Reports StoneX Group Inc. (SNEX): Free Stock Analysis Report Jackson Financial Inc. (JXN): 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