Invesco S&P MidCap 400 Revenue ETF (RWK)

Overview

The Invesco S&P MidCap 400 Revenue ETF (RFV) tracks an index of mid-cap U.S. companies, weighting them by revenue instead of market capitalization. This strategy aims to overweight companies with higher revenue relative to their market cap, potentially leading to outperformance. The asset allocation primarily focuses on mid-cap equities across various sectors.

Reputation and Reliability

Invesco is a well-established global investment management firm with a strong reputation and a long track record of managing ETFs and other investment products.

Management Expertise

Invesco has a dedicated team of experienced portfolio managers and analysts specializing in ETFs and quantitative investment strategies.

Goal

The primary investment goal of RFV is to achieve long-term capital appreciation by tracking the performance of the S&P MidCap 400 Revenue-Weighted Index.

Investment Approach and Strategy

Strategy: RFV tracks the S&P MidCap 400 Revenue-Weighted Index.

Composition The ETF holds stocks of mid-sized U.S. companies selected from the S&P MidCap 400 Index and weighted by their annual revenues.

Market Share: RFV's market share within the mid-cap revenue-weighted ETF segment is notable, but it faces competition from other smart beta and actively managed mid-cap funds.

Total Net Assets (AUM): 593792650

Key Competitors

• First Trust Mid Cap Core AlphaDEX ETF (FNX)
• Principal U.S. Mega-Cap ETF (USMC)
• SPDR S&P MidCap 400 ETF Trust (MDY)

Competitive Landscape

The mid-cap ETF market is competitive, with various strategies, including market-cap weighting, revenue weighting, and fundamental indexing. RFV's revenue-weighting strategy differentiates it. Advantages of RFV include potential for outperformance due to the revenue-weighting methodology, while disadvantages may include higher volatility compared to market-cap-weighted ETFs. Compared to MDY, RFV has a different weighting scheme which leads to over/under exposure of companies within the mid-cap segment.

Historical Performance: Historical performance data should be sourced from financial websites. Past performance is not indicative of future results.

Benchmark Comparison: Comparison to the S&P MidCap 400 Index should be conducted to assess the effectiveness of the revenue-weighting strategy.

Expense Ratio: 0.39

Average Trading Volume

The average trading volume is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally tight, suggesting efficient trading and lower transaction costs.

Market Environment Factors

Economic growth, interest rates, and sector-specific trends influence RFV's performance. Strong economic growth generally supports mid-cap companies, while sector performance impacts specific holdings.

Growth Trajectory

RFV's growth depends on the performance of its underlying holdings and the continued adoption of revenue-weighted investment strategies. Changes in holdings or strategy modifications may occur over time.

Competitive Edge

RFV's competitive edge lies in its revenue-weighting strategy, which aims to identify undervalued companies based on their revenue generation. By overweighting companies with higher revenue relative to their market cap, RFV seeks to capture potential outperformance. This approach differentiates it from traditional market-cap-weighted mid-cap ETFs. The fundu2019s focus on revenue as a key metric provides a unique investment perspective.

Volatility

RFV may exhibit higher volatility than market-cap-weighted mid-cap ETFs due to its concentrated holdings and revenue-weighting methodology. Historical volatility data should be analyzed to assess its risk profile.

Market Risk

RFV is subject to market risk, including fluctuations in stock prices and economic downturns. Specific risks include the potential for underperformance if the revenue-weighting strategy does not deliver expected results and risks associated with the specific sectors in which the ETF invests.

Ideal Investor Profile

RFV is suitable for investors seeking exposure to mid-cap U.S. equities with a smart beta approach. Ideal investors are those who understand and are comfortable with the potential for higher volatility in pursuit of potentially higher returns.

Market Risk

RFV is best suited for long-term investors with a moderate to high risk tolerance. It may also appeal to investors looking to diversify their portfolio with a factor-based investment strategy.

The Invesco S&P MidCap 400 Revenue ETF (RFV) provides exposure to mid-cap U.S. equities, weighted by revenue rather than market capitalization. RFV's revenue-weighting strategy aims to overweight companies with higher revenue relative to their market cap. While this approach may lead to higher potential returns, it could also lead to higher volatility. Investors should carefully consider their risk tolerance and investment objectives before investing in RFV. It makes RFV ideal for investors seeking to diversify their portfolio with a factor-based investment strategy.

• IWR
• IJH
• VO
• MDY
• IJJ

Data Sources:

• Invesco Website
• SEC Filings
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Market share data are estimates and may vary.