Analyzing the Invesco RAFI Emerging Markets ETF (PXH): Performance, Fundamentals, and Top Holdings

The Invesco RAFI Emerging Markets ETF (PXH) is a smart beta ETF that tracks the FTSE RAFI Emerging Markets Index. It has over $1.54 billion in assets and a 0.47% expense ratio. The fund seeks to match the performance of the largest emerging market equities, selected based on four fundamental measures of firm size. Taiwan Semiconductor Manufacturing Co Ltd accounts for 6.04% of the fund's total assets, followed by Alibaba Group Holding Ltd and China Construction Bank Corp.

The Invesco RAFI Emerging Markets ETF (PXH) has been a significant player in the emerging markets ETF landscape since its inception on September 27, 2007. As a smart beta exchange-traded fund (ETF), PXH offers broad exposure to the broad emerging market ETFs category, tracking the FTSE RAFI Emerging Markets Index. This index is designed to select the largest emerging market equities based on four fundamental measures of firm size: book value, cash flow, sales, and dividends.

With over $1.54 billion in assets under management, PXH is one of the larger ETFs in the broad emerging market ETFs category. The fund's expense ratio stands at 0.47%, making it competitive with its peers. The fund seeks to match the performance of the underlying index, with a 12-month trailing dividend yield of 3.40%.

The top holdings of PXH include Taiwan Semiconductor Manufacturing Co Ltd, which accounts for 6.04% of the fund's total assets, followed by Alibaba Group Holding Ltd and China Construction Bank Corp. The top 10 holdings account for approximately 29.85% of the fund's total assets.

In terms of performance, PXH has shown strong growth. As of August 11, 2025, the fund has added about 19.06% year-to-date and was up about 25.26% over the last 12 months. The ETF has traded between $18.80 and $24.36 over the past 52 weeks. PXH has a beta of 0.57 and a standard deviation of 17.81% over the trailing three-year period, indicating medium risk.

Investors should consider PXH if they are looking for a smart beta ETF with a focus on fundamental characteristics in the emerging markets. However, it is essential to compare this fund with other ETFs in the space, such as the Vanguard FTSE Emerging Markets ETF (VWO) and the iShares Core MSCI Emerging Markets ETF (IEMG), which have lower expense ratios.

References:
[1] https://finance.yahoo.com/news/invesco-rafi-emerging-markets-etf-102002329.html
[2] https://finance.yahoo.com/quote/PXH/
[3] https://www.inkl.com/news/trump-announces-100-tariffs-on-semiconductor-makers-but-apple-won-t-be-hit-and-this-key-chipmaker-will-also-escape-sanctions