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Is Invesco S&P 500 Pure Value ETF (RPV) a Strong ETF Right Now?
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Launched on 03/01/2006, the Invesco S&P 500 Pure Value ETF (RPV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco. RPV has been able to amass assets over $1.62 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. RPV, before fees and expenses, seeks to match the performance of the S&P 500 Pure Value Index.
The S&P 500 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P 500 Index.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.35% for RPV, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 30.60% of the portfolio, the fund has heaviest allocation to the Financials sector; Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, General Motors Co (GM - Free Report) accounts for about 3.30% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Paramount Global (PARA - Free Report) .
Its top 10 holdings account for approximately 24.54% of RPV's total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Pure Value ETF has lost about -0.24% so far, and is down about -4.37% over the last 12 months (as of 02/02/2024). RPV has traded between $67.85 and $88.05 in this past 52-week period.
The fund has a beta of 1.19 and standard deviation of 19.62% for the trailing three-year period, which makes RPV a medium risk choice in this particular space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $52.75 billion in assets, Vanguard Value ETF has $108.10 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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.
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Is Invesco S&P 500 Pure Value ETF (RPV) a Strong ETF Right Now?
Launched on 03/01/2006, the Invesco S&P 500 Pure Value ETF (RPV - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.
Fund Sponsor & Index
The fund is managed by Invesco. RPV has been able to amass assets over $1.62 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. RPV, before fees and expenses, seeks to match the performance of the S&P 500 Pure Value Index.
The S&P 500 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P 500 Index.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Operating expenses on an annual basis are 0.35% for RPV, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.39%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 30.60% of the portfolio, the fund has heaviest allocation to the Financials sector; Healthcare and Consumer Discretionary round out the top three.
When you look at individual holdings, General Motors Co (GM - Free Report) accounts for about 3.30% of the fund's total assets, followed by Berkshire Hathaway Inc (BRK/B) and Paramount Global (PARA - Free Report) .
Its top 10 holdings account for approximately 24.54% of RPV's total assets under management.
Performance and Risk
Year-to-date, the Invesco S&P 500 Pure Value ETF has lost about -0.24% so far, and is down about -4.37% over the last 12 months (as of 02/02/2024). RPV has traded between $67.85 and $88.05 in this past 52-week period.
The fund has a beta of 1.19 and standard deviation of 19.62% for the trailing three-year period, which makes RPV a medium risk choice in this particular space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $52.75 billion in assets, Vanguard Value ETF has $108.10 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value.
Bottom Line
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.