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

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

Profile:

RZV is an exchange-traded fund (ETF) that tracks the S&P SmallCap 600 Pure Value Index. This index focuses on small-cap stocks with value characteristics, such as low price-to-book ratios and high dividend yields. RZV aims to provide investors with exposure to the small-cap value segment of the U.S. equity market.

Objective:

The primary objective of RZV is to track the performance of the S&P SmallCap 600 Pure Value Index and provide investors with a low-cost way to gain exposure to small-cap value stocks.

Issuer:

RZV is issued by Invesco Ltd., a global investment management company with over $1.4 trillion in assets under management. Invesco is known for its strong reputation and track record in the market.

Market Share:

RZV has a market share of approximately 0.4% in the U.S. small-cap value ETF space.

Total Net Assets:

As of November 7, 2023, RZV has total net assets of approximately $1.7 billion.

Moat:

RZV's main competitive advantage is its low expense ratio of 0.35%. This makes it one of the most cost-effective ways for investors to gain exposure to the small-cap value segment. Additionally, RZV's focus on pure value stocks provides investors with a more concentrated exposure to this style of investing.

Financial Performance:

RZV has outperformed its benchmark index, the S&P SmallCap 600 Pure Value Index, over the past three and five years. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The small-cap value segment of the market is expected to grow in the coming years, driven by factors such as improving economic conditions and rising interest rates. This bodes well for RZV's future prospects.

Liquidity:

RZV has an average daily trading volume of over 200,000 shares, making it a relatively liquid ETF. The bid-ask spread is typically around 0.05%, which is considered low.

Market Dynamics:

Factors such as economic growth, interest rates, and inflation can impact the performance of small-cap value stocks. Investors should be aware of these factors when considering an investment in RZV.

Competitors:

Key competitors of RZV include:

• iShares S&P Small-Cap 600 Value ETF (IJS) - Market share: 4.5%
• Vanguard Small-Cap Value ETF (VBR) - Market share: 3.8%
• SPDR S&P SmallCap 600 Value ETF (SLYV) - Market share: 1.2%

Expense Ratio:

RZV has an expense ratio of 0.35%.

Investment Approach and Strategy:

RZV tracks the S&P SmallCap 600 Pure Value Index, which consists of approximately 125 small-cap stocks with value characteristics. The ETF holds all of the stocks in the index in the same proportion as the index.

Key Points:

• Low-cost way to gain exposure to small-cap value stocks
• Focus on pure value stocks
• Outperformed its benchmark index over the past three and five years
• Expected to benefit from growth in the small-cap value segment

Risks:

• Small-cap stocks are more volatile than large-cap stocks
• Value stocks can underperform growth stocks in certain market environments
• The ETF is subject to tracking error, which is the difference between the ETF's performance and the performance of its benchmark index

Who Should Consider Investing:

RZV is suitable for investors who are looking for a low-cost way to gain exposure to the small-cap value segment of the U.S. equity market. Investors should be aware of the risks associated with small-cap value stocks and should consider their own investment objectives and risk tolerance before investing.

Fundamental Rating Based on AI:

Based on an AI-based rating system, RZV receives a 7.5 out of 10. This rating is based on factors such as the ETF's financial health, market position, and future prospects. RZV's low expense ratio, track record of outperformance, and exposure to a growing market segment are all positive factors. However, the ETF's relatively small market share and the potential for volatility in small-cap value stocks are negative factors.

Resources and Disclaimers:

• Invesco S&P SmallCap 600 Pure Value ETF website: https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&productId=ETF-RZV
• S&P SmallCap 600 Pure Value Index website: https://www.spglobal.com/spdji/en/indices/equity/sp-smallcap-600-pure-value-index/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.