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

The Invesco S&P MidCap 400 Pure Value ETF (RFV) made its debut on 03/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - Mid Cap Value category of the market.

What Are Smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

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.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

The fund is sponsored by Invesco. It has amassed assets over $326.75 million, making it one of the average sized ETFs in the Style Box - Mid Cap Value. Before fees and expenses, RFV seeks to match the performance of the S&P MidCap 400 Pure Value Index.

The S&P MidCap 400 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.35%, making it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 0.91%.

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.

Representing 21.7% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Financials and Industrials round out the top three.

Looking at individual holdings, Concentrix Corp (CNXC) accounts for about 2.89% of total assets, followed by Avnet Inc (AVT) and Arrow Electronics Inc (ARW).

The top 10 holdings account for about 20.9% of total assets under management.

Performance and Risk

The ETF has gained about 10.16% so far this year and is up about 15.36% in the last one year (as of 02/10/2026). In the past 52-week period, it has traded between $97.97 and $142.77

The ETF has a beta of 1.13 and standard deviation of 21.36% for the trailing three-year period, making it a high risk choice in the space. With about 103 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco S&P MidCap 400 Pure Value ETF is a reasonable option for investors seeking to outperform the Style Box - Mid Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Russell Mid-Cap Value ETF (IWS) tracks Russell MidCap Value Index and the Vanguard Mid-Cap Value ETF (VOE) tracks CRSP U.S. Mid Cap Value Index. iShares Russell Mid-Cap Value ETF has $15.15 billion in assets, Vanguard Mid-Cap Value ETF has $21.84 billion. IWS has an expense ratio of 0.23% and VOE changes 0.05%.

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 - Mid Cap Value

Bottom Line

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

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