A smart beta exchange traded fund, the Invesco S&P 500 Pure Value ETF (RPV) debuted on 03/01/2006, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Managed by Invesco, RPV has amassed assets over $1.33 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. RPV seeks to match the performance of the S&P 500 Pure Value Index before fees and expenses.
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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.35%.
RPV's 12-month trailing dividend yield is 2.33%.
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.
This ETF has heaviest allocation in the Financials sector - about 18.8% of the portfolio. Consumer Staples and Healthcare round out the top three.
Taking into account individual holdings, Cvs Health Corp (CVS) accounts for about 3.23% of the fund's total assets, followed by Ford Motor Co (F) and Mosaic Co/the (MOS).
The top 10 holdings account for about 23.69% of total assets under management.
Performance and Risk
So far this year, RPV has gained about 7.41%, and is up roughly 12.92% in the last one year (as of 08/20/2025). During this past 52-week period, the fund has traded between $81.66 and $97.21.
RPV has a beta of 0.95 and standard deviation of 17.83% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 107 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) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $71.3 billion in assets, Vanguard Value ETF has $142.2 billion. SCHD has an expense ratio of 0.06% and VTV changes 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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Invesco S&P 500 Pure Value ETF (RPV): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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