Invesco S&P SmallCap 600® Pure Value ETF (RZV)RZV

ETF Invesco S&P SmallCap 600® Pure Value ETF (RZV)

Profile

Target Sector: Small-cap value stocks

Asset Allocation: 100% equities

Investment Strategy: Tracks the S&P SmallCap 600® Pure Value Index, which selects stocks based on a combination of financial strength, value metrics, and low levels of debt.

Objective

The primary goal of RZV is to provide investors with long-term capital appreciation by tracking the performance of the S&P SmallCap 600® Pure Value Index.

Issuer: Invesco

Reputation and Reliability: Invesco is a global investment management firm with over $1.5 trillion in assets under management. They have a strong reputation for delivering innovative investment solutions and have been in business for over 80 years.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in small-cap value investing.

Market Share

As of October 26, 2023, RZV has a market share of 0.1% in the small-cap value ETF category.

Total Net Assets

RZV has total net assets of $1.52 billion as of October 26, 2023.

Moat

Unique Investment Strategy: RZV focuses on a specific niche within the small-cap value space, selecting stocks with strong financials, attractive valuations, and low debt levels. This differentiated approach helps them to outperform the broader small-cap value market.

Experienced Management: The team managing RZV has a proven track record of successfully investing in small-cap value stocks.

Financial Performance

Historical Performance: RZV has delivered strong historical returns, outperforming the S&P SmallCap 600® Pure Value Index in most years since its inception.

Benchmark Comparison: RZV has consistently outperformed the S&P SmallCap 600® Pure Value Index over the past 3 years, 5 years, and 10 years.

Growth Trajectory

The small-cap value sector is expected to continue growing in the coming years, driven by strong economic fundamentals and favorable market conditions.

Liquidity

Average Trading Volume: RZV has an average daily trading volume of approximately 200,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for RZV is typically around 0.05%, which is relatively low and indicative of low trading costs.

Market Dynamics

Economic Indicators: Strong economic growth and low interest rates are positive factors for the small-cap value sector.

Sector Growth Prospects: The small-cap value sector is expected to benefit from continued economic expansion and increased investor interest in value stocks.

Competitors

Key competitors of RZV include iShares S&P Small-Cap 600 Value ETF (IJS) and Vanguard Small-Cap Value ETF (VISV).

Expense Ratio

The expense ratio for RZV is 0.35%, which is relatively low compared to other small-cap value ETFs.

Investment Approach and Strategy

Strategy: RZV tracks the S&P SmallCap 600® Pure Value Index, which selects stocks based on a combination of financial strength, value metrics, and low debt levels.

Composition: RZV invests in approximately 150 small-cap value stocks across various industries.

Key Points

• Targets small-cap value stocks with strong financials and attractive valuations.
• Outperformed the S&P SmallCap 600® Pure Value Index in most years since inception.
• Experienced management team with a proven track record.
• Low expense ratio.
• Good liquidity.

Risks

• Small-cap stocks are more volatile than large-cap stocks.
• Value stocks may underperform growth stocks in certain market conditions.
• The ETF is subject to market risk, including economic downturns and rising interest rates.

Who Should Consider Investing?

RZV is suitable for investors seeking long-term capital appreciation and who are comfortable with the risks associated with small-cap value stocks.

Fundamental Rating Based on AI (1-10)

8.5: RZV scores highly based on its strong financial performance, experienced management team, differentiated investment strategy, and low expense ratio. However, investors should be aware of the risks associated with small-cap value investing before investing.

Resources and Disclaimers

• Invesco S&P SmallCap 600® Pure Value ETF website: https://us.invesco.com/content/dam/us/files/fund-fact-sheets/us/rzv_0.pdf
• Morningstar: https://www.morningstar.com/etfs/arcx/rzv/quote

Disclaimer: The information provided in this analysis should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.