A sound investment process and strong management team underpin Invesco S&P MidCap 400® Pure Value ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in liquidity exposure and yield exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

PBF Energy

Macy's

SYNNEX

Avnet

United States Steel

HF Sinclair Corp

Arrow Electronics

Goodyear Tire & Rubber

Lithia Motors

Cleveland-Cliffs

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Invesco S&P MidCap 400® Pure Value ETF earns an Above Average Process Pillar rating. 

The most important driver of the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. This fund tracks an index, which also increases its process rating. Historical data, like Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

 This strategy prefers more value-oriented stocks compared with the average fund in its peer group, the Small Value Morningstar Category. But in terms of size exposure, it is similar to the average. Looking at additional factor exposure, the fund has held stocks with higher trading volumes compared to Morningstar Category Peers in the past few years. More-liquid assets contribute to more-flexible exit strategies without price changes and tend to be a ballast during market selloffs. For example, if the portfolio faces successive redemptions in a short period of time, it will be less likely to experience a significant loss. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The managers have also tended to overweight yield during recent years, shown by the portfolio's high exposure to dividends or buybacks. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, the strategy also had more exposure to the Yield factor in the most recent month. In addition, this strategy has exhibited a tilt toward higher-volatility stocks in these years, meaning companies that have a higher historical standard deviation of returns compared with peers. This contributes to a higher-risk, higher-reward approach. In this month, the strategy also had more exposure to the Volatility factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and consumer defensive relative to the category average by 9.9 and 3.7 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and industrials, underweight the average by 8.0 and 3.6 percentage points of assets, respectively. The portfolio is positioned across 91 holdings and its assets are more dispersed than peers in the category. In particular, 23.5% of the strategy's assets are concentrated in the top 10 fund holdings, as opposed to the typical peer's 28.1%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 57% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

Invesco’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are four managers listed on the fund: Michael Jeanette, Peter Hubbard, Tony Seisser, Pratik Doshi. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of 144 strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. This group has been working together for a while and has been successful in retaining talent compared to peers, with no departures in the last five years.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

Invesco succeeds in a number of areas but also has its share of subpar offerings, along with many others that land somewhere in the middle. A mid-2023 change of CEO, from longtime chief Marty Flanagan to veteran Invesco executive Andrew Schlossberg, is noteworthy, and several other executives retired or departed in 2023. Portfolio-manager shuffles aimed at bolstering poor performers, which began under Flanagan, have continued under Schlossberg, who told Morningstar his most important aim is bolstering “investment quality.” However, major changes of direction or approach are unlikely. The firm retains a Morningstar Parent rating of Average. 
Invesco’s international-equity teams in Texas and New York remain solid. However, the extensive U.S.-equity lineup needs improvement. Fixed-income offerings run the gamut: The multisector and short-term-bond areas are good, but corporate high-yield is less impressive. The firm’s exchange-traded fund lineup includes the popular Nasdaq-focused QQQ; passive strategies make up around 37% of Invesco’s assets under management. Invesco has not been averse to trying new types of strategies, and it was among the firms that immediately launched a spot bitcoin ETF after SEC approval in early 2024.
The picture outside the United States is mixed. Fund performance has been subpar in Asia, and while the picture has brightened in the United Kingdom and Europe, that region still can’t be considered a strength.

Average

Parent

Invesco S&P MidCap 400 Pure Value ETF

RFV tracks a fundamentally weighted index of US-listed value companies.

Invesco S&P MidCap 400® Pure Value ETF offers exposure to mid-cap value stocks in the US market. The RFV ETF has a well-diversified portfolio with top holdings including PBF Energy, Macy's, Avnet, United States Steel, and Hertz Global. The fund's sector breakdown includes Consumer Discretionary, Financials, Industrials, Information Technology, Energy, Materials, Consumer Staples, Real Estate, Health Care, Utilities, and Communication Services.

RFV: Strong Value And Potentially The Right Time

With an 8.1% earnings yield, Invesco S&P MidCap 400 Pure Value ETF should definitely appeal to zealous value investors. They should be prepared for the repercussions of its quality- and growth-agnostic strategy. Since December 2023, RFV's quality and growth characteristics have deteriorated, while the ETF itself has been languishing despite the market marching higher.

RFV: Deterioration In Growth Characteristics, Soft Quality Warrant Caution

Designed to provide broad exposure to the Style Box - Mid Cap Value category of the market, the Invesco S&P MidCap 400 Pure Value ETF (RFV) is a smart beta exchange traded fund launched on 03/01/2006.

Is Invesco S&P MidCap 400 Pure Value ETF (RFV) a Strong ETF Right Now?

If you're interested in broad exposure to the Mid Cap Value segment of the US equity market, look no further than the Invesco S&P MidCap 400 Pure Value ETF (RFV), a passively managed exchange traded fund launched on 03/01/2006.

Should Invesco S&P MidCap 400 Pure Value ETF (RFV) Be on Your Investing Radar?

Fidelity Blue Chip Growth ETF

First Trust Small Cap Value AlphaDEX Fund

Invesco S&P SmallCap 600 Pure Value ETF

Invesco S&P 500 High Beta ETF

The S&P 500 is on the verge of reaching the 5,000 milestone mark for the first time ever. High-beta ETFs seem a perfect bet at present to make huge profits amid the bullish backdrop.

S&P 500 Nears 5,000: Bet on High-Beta ETFs

RFV is a passively managed investment vehicle beautifully calibrated for investors who are not ready for compromises on the value front. RFV's underlying index has been rebalanced this December. I have reviewed RFV's factor mix for the second time and found out that while it still has excellent value characteristics, there is almost no improvement on the quality front.

RFV: Is It Worth Sacrificing Quality For Value?

Invesco S&P MidCap 400 Revenue ETF

Christmas has come early for Macy's Inc. (M). The Wall Street Journal reported that the retail giant received a $5.8 billion buyout from Arkhouse Management and Brigade Capital Management.

Gift Yourself Some Surging Macy's Stock Via RWK & RFW

Principal Healthcare Innovators Index ETF

iShares Focused Value Factor ETF

iShares North American Tech-Software ETF

Invesco S&P 500 Pure Value ETF

Invesco S&P 500 Enhanced Value ETF

Vanguard Value ETF

Vanguard Growth ETF

As rising rates are in the cards, value stocks are likely to take a center stage in the near term.

Value ETF Investing to Shine as Sector Rotation Looks Likely?

Invesco S&P MidCap 400 Pure Value ETF tracks a mid-cap value index based on valuation and growth metrics. About 36% of asset value is in consumer discretionary.

RFV: Pure Value ETF Outperforming For 3 Years

RFV is an index-based fund offering exposure to pure-value players selected from the S&P 400. In the current iteration, RFV favors the consumer discretionary, IT, and financial sectors while ignoring energy completely.

RFV: An Appealing Value Portfolio With Low Quality As A Disadvantage

This value ETF hits a new 52-week high. Are more gains in store for this ETF?

Value ETF (RFV) Hits New 52-Week High

Avantis U.S. Small Cap Value ETF

Direxion Low Priced Stock ETF

Vanguard Small Cap Value ETF

U.S. small-cap index the Russell 2000 gained the most last week.

Time for Small-Cap ETFs Now?

iShares Floating Rate Bond ETF

ProShares High Yield-Interest Rate Hedged ETF

First Trust Multi-Asset Diversified Income Index Fund

ProShares Inflation Expectations ETF

U.S. benchmark government bond yields rose to 3.03% from 2.98% on Jun 8 on inflationary fears.

Benchmark Treasury Yields Jump: 5 ETFs to Play

ProShares Bitcoin Strategy ETF

iShares U.S. Home Construction ETF

iShares Russell 2000 ETF

SPDR S&P Bank ETF

Invesco QQQ

Vanguard Mortgage-Backed Securities ETF

Utilities Select Sector SPDR Fund

The latest Fed minutes came across as hawkish which resulted in a wavering stock market. Bond yields started rising.

ETFs to Win or Lose on Hawkish Fed Minutes (Revised)

ETFs to Win or Lose on Hawkish Fed Minutes

U.S. government bond yields rose to their highest levels since November to start 2022.

Treasury Yields Jump to Start New Year: ETFs to Play

Invesco S&P MidCap 400 Pure Growth ETF

A State Street Global Advisors (SSGA) report noted the resiliency of mid-cap equities, particularly during market downturns, which defies conventional wisdom that large-cap equities can best mute the effects of a heavy sell-off. “Amid the ongoing COVID-19 crisis, market swings caused by the pandemic have created an opportunity for investors to reposition their portfolios,” SSGA [.

Whether You Favor Value or Growth, Consider These Two Mid-Cap ETFs

iSh SP US PrfSt Shs

Vanguard High Dividend Yield ETF

Rates have been rising fast in the United States over the past few weeks on growing risk appetite and reflationary optimism as well as QE taper talks.

ETFs to Play Higher Benchmark Treasury Yields

VictoryShares Nasdaq Next 50 ETF

Invesco S&P Smallcap 600 Revenue ETF

High-beta ETFs seek to capitalize on consistent growth with market-beating returns.

High-Beta ETFs to Bet on Renewed Market Momentum

The current macroeconomic backdrop has investors considering whether or not value's ascendency still has legs to run. Yet it seems every market pundit has a different take on the growth vs.

Exploring the Benefits and Uses of Value Strategies

Nearly eight months into 2021, mid cap stocks are, well, in the middle. Mid caps are beating small cap stocks while lagging behind broader large cap benchmarks.

The RFV ETF: Victorious Value and Marvelous Mid Caps

Roundhill Deep Value

Value stocks, which have strong fundamentals - earnings, dividends, book value and cash flow - and trade below their intrinsic value, have been benefiting from the growth in the economy.

Value Investing Wins in 1H: 7 Best-Performing ETFs

Rates have been rising fast in the United States over the past few weeks on growing risk appetite and reflationary optimism.

5 ETFs to Play Rising Yields

SPDR S&P 400 Mid Cap Value ETF

Value stocks seek to capitalize on the inefficiencies in the market and have the potential to deliver higher returns with lower volatility compared with their growth and blend counterparts.

5 Great Value ETFs to Buy as Inflation Fears Grip Markets

iShares Russell Mid-Cap Value ETF

SPDR S&P 600 Small Cap Value ETF

Vanguard Mid-Cap Value ETF

RZV scored Best for the week, according to Q.ai's AI systems. Our deep learning algorithms have crunched the numbers to bring you this month's top US Value Smart Beta ETFs — the best, the good, and the caution.

News for Invesco S&P MidCap 400 Pure Value ETF ETF (RFV)