Is Invesco S&P SmallCap 600 Pure Value ETF (RZV) a Strong ETF Right Now?

Designed to provide broad exposure to the Style Box - Small Cap Value category of the market, the Invesco S&P SmallCap 600 Pure Value ETF (RZV) is a smart beta exchange traded fund launched on 03/01/2006.

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.

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

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

RZV is managed by Invesco, and this fund has amassed over $305.43 million, which makes it one of the average sized ETFs in the Style Box - Small Cap Value. RZV seeks to match the performance of the S&P SmallCap 600 Pure Value Index before fees and expenses.

The S&P SmallCap 600 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P SmallCap 600 Index.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Operating expenses on an annual basis are 0.35% for RZV, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 1.38%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

RZV's heaviest allocation is in the Consumer Discretionary sector, which is about 26.1% of the portfolio. Its Industrials and Financials round out the top three.

Looking at individual holdings, Ichor Holdings Ltd (ICHR) accounts for about 2.44% of total assets, followed by Acadia Healthcare Co Inc (ACHC) and Vestis Corp (VSTS).

The top 10 holdings account for about 14.79% of total assets under management.

Performance and Risk

The ETF has gained about 27.88% so far this year and was up about 42.49% in the last one year (as of 08/12/2026). In the past 52-week period, it has traded between $109.91 and $153.01

RZV has a beta of 1.09 and standard deviation of 22.78% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 159 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco S&P SmallCap 600 Pure Value ETF is an excellent option for investors seeking to outperform the Style Box - Small Cap Value segment of the market. There are other ETFs in the space which investors could consider as well.

iShares Russell 2000 Value ETF (IWN) tracks Russell 2000 Value Index and the Vanguard Morningstar Small-Cap Value ETF (VBR) tracks CRSP U.S. Small Cap Value Index. iShares Russell 2000 Value ETF has $14.64 billion in assets, Vanguard Morningstar Small-Cap Value ETF has $38.08 billion. IWN has an expense ratio of 0.24% and VBR 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 - Small Cap Value

Bottom Line

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

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