Should Invesco S&P SmallCap 600 Pure Value ETF (RZV) Be on Your Investing Radar?

If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Invesco S&P SmallCap 600 Pure Value ETF (RZV), a passively managed exchange traded fund launched on March 1, 2006.

The fund is sponsored by Invesco. It has amassed assets over $231.89 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

Small cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.35%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.15%.

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.

This ETF has heaviest allocation to the Consumer Discretionary sector -- about 27.9% of the portfolio. Industrials and Energy round out the top three.

Looking at individual holdings, Acadia Healthcare Co Inc (ACHC) accounts for about 1.79% of total assets, followed by Ichor Holdings Ltd (ICHR) and Patterson-Uti Energy Inc (PTEN).

The top 10 holdings account for about 13.57% of total assets under management.

Performance and Risk

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.

The ETF return is roughly 0.53% so far this year and is up about 19.82% in the last one year (as of 03/23/2026). In the past 52-week period, it has traded between $83.11 and $136.73.

The ETF has a beta of 1.12 and standard deviation of 23.43% for the trailing three-year period, making it a high risk choice in the space. With about 164 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P SmallCap 600 Pure Value ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, RZV is a reasonable option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value Index Fund ETF Shares (VBR) track a similar index. While iShares Russell 2000 Value ETF has $11.99 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $31.62 billion. IWN has an expense ratio of 0.24% and VBR charges 0.05%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Boost Your Portfolio with Our Top ETF Insights

Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.

Don’t miss out on this valuable resource. It’s free!

Get it now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Invesco S&P SmallCap 600 Pure Value ETF (RZV): ETF Research Reports

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

Zacks Investment Research