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

If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Invesco S&P SmallCap Value with Momentum ETF (XSVM), a passively managed exchange traded fund launched on 03/03/2005.The fund is sponsored by Invesco. It has amassed assets over $556.89 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 ValueSitting 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.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. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 2.42%.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 46% of the portfolio. Consumer Discretionary and Industrials round out the top three.Looking at individual holdings, World Kinect Corp (WKC) accounts for about 2% of total assets, followed by Stonex Group Inc (SNEX) and Lincoln National Corp (LNC).The top 10 holdings account for about 14.96% 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 lost about -16.10% so far this year and is down about -15.14% in the last one year (as of 04/11/2025). In the past 52-week period, it has traded between $44.22 and $60.64.The ETF has a beta of 1.09 and standard deviation of 23.56% for the trailing three-year period. With about 121 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P SmallCap Value with Momentum ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XSVM is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.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 $12.94 billion in assets, Vanguard Small-Cap Value ETF has $25.48 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 Value with Momentum ETF (XSVM): ETF Research Reports Lincoln National Corporation (LNC): 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 World Kinect Corporation (WKC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks