Ought to Invesco S&P SmallCap 600 Pure Worth ETF (RZV) Be on Your Investing Radar?

Should you’re taken with broad publicity to the Small Cap Worth phase of the US fairness market, look no additional than the Invesco S&P SmallCap 600 Pure Worth ETF (RZV), a passively managed change traded fund launched on 03/01/2006.

The fund is sponsored by Invesco. It has amassed belongings over $225.96 million, making it one of many common sized ETFs trying to match the Small Cap Worth phase of the US fairness market.

Why Small Cap Worth

With extra potential comes extra danger, and small cap corporations, with market capitalization beneath $2 billion, epitomizes this mind-set.

Carrying decrease than common price-to-earnings and price-to-book ratios, worth shares even have decrease than common gross sales and earnings progress charges. their long-term efficiency, worth shares have outperformed progress shares in nearly all markets. They’re nonetheless more likely to underperform progress shares in robust bull markets.

Prices

When contemplating an ETF’s whole return, expense ratios are an vital issue, and cheaper funds can considerably outperform their dearer counterparts in the long run if all different elements stay equal.

Annual working bills for this ETF are 0.35%, placing it on par with most peer merchandise within the area.

It has a 12-month trailing dividend yield of 1.16%.

Sector Publicity and High Holdings

It is very important delve into an ETF’s holdings earlier than investing regardless of the various upsides to those sorts of funds like diversified publicity, which minimizes single inventory danger. And, most ETFs are very clear merchandise that disclose their holdings every day.

This ETF has heaviest allocation to the Client Discretionary sector–about 25.90% of the portfolio. Financials and Power spherical out the highest three.

particular person holdings, Par Pacific Holdings Inc (PARR) accounts for about 1.65% of whole belongings, adopted by Topgolf Callaway Manufacturers Corp (MODG) and Kohl’s Corp (KSS).

The highest 10 holdings account for about 14.7% of whole belongings underneath administration.

Efficiency and Threat

RZV seeks to match the efficiency of the S&P SmallCap 600 Pure Worth Index earlier than charges and bills. The S&P SmallCap 600 Pure Worth Index measures the efficiency of securities that exhibit robust worth traits within the S&P SmallCap 600 Index.

The ETF has misplaced about -1.98% to date this 12 months and is up roughly 10.80% within the final one 12 months (as of 02/10/2025). Previously 52-week interval, it has traded between $96.80 and $119.36.

The ETF has a beta of 1.42 and customary deviation of 24.02% for the trailing three-year interval, making it a excessive danger selection within the area. With about 147 holdings, it successfully diversifies company-specific danger.

Alternate options

Invesco S&P SmallCap 600 Pure Worth ETF carries a Zacks ETF Rank of three (Maintain), which is predicated on anticipated asset class return, expense ratio, and momentum, amongst different elements. Thus, RZV is an efficient possibility for these looking for publicity to the Fashion Field – Small Cap Worth space of the market. Traders may also need to contemplate another ETF choices within the area.

The Avantis U.S. Small Cap Worth ETF (AVUV) and the Vanguard Small-Cap Worth ETF (VBR) observe an analogous index. Whereas Avantis U.S. Small Cap Worth ETF has $15.95 billion in belongings, Vanguard Small-Cap Worth ETF has $31.80 billion. AVUV has an expense ratio of 0.25% and VBR fees 0.07%.

Backside-Line

Retail and institutional buyers more and more flip to passively managed ETFs as a result of they provide low prices, transparency, flexibility, and tax effectivity; these form of funds are additionally wonderful automobiles for long run buyers.

To be taught extra about this product and different ETFs, display screen for merchandise that match your funding targets and browse articles on newest developments within the ETF investing universe, please go to Zacks ETF Center.