Is Invesco S&P 500 Pure Value ETF (RPV) a Strong ETF Right Now?

Making its debut on 03/01/2006, smart beta exchange traded fund Invesco S&P 500 Pure Value ETF (RPV) provides investors broad exposure to the Style Box - Large Cap Value category of the market.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

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

Managed by Invesco, RPV has amassed assets over $1.36 billion, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund 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

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

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 2.57%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

For RPV, it has heaviest allocation in the Healthcare sector --about 18.2% of the portfolio --while Financials and Consumer Staples round out the top three.

Looking at individual holdings, Cvs Health Corp (CVS) accounts for about 3.45% of total assets, followed by General Motors Co (GM) and Ford Motor Co (F).

RPV's top 10 holdings account for about 24.85% of its total assets under management.

Performance and Risk

So far this year, RPV has gained about 11.87%, and it's up approximately 13.54% in the last one year (as of 10/31/2025). During this past 52-week period, the fund has traded between $81.66 and $101.05.

The fund has a beta of 0.96 and standard deviation of 16.91% for the trailing three-year period, which makes RPV a medium risk choice in this particular space. With about 106 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 $69.1 billion in assets, Vanguard Value ETF has $148.72 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

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This article originally published on Zacks Investment Research (zacks.com).

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