Is Invesco RAFI Developed Markets ex-U.S. ETF (PXF) a Strong ETF Right Now?

Designed to provide broad exposure to the Foreign Large Value ETF category of the market, the Invesco RAFI Developed Markets ex-U.S. ETF (PXF) is a smart beta exchange traded fund launched on 06/25/2007.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.

Fund Sponsor & Index

PXF is managed by Invesco, and this fund has amassed over $3.01 billion, which makes it one of the larger ETFs in the Foreign Large Value ETF. This particular fund, before fees and expenses, seeks to match the performance of the FTSE RAFI Developed ex-U.S. Index.

The RAFI Fundamental Select Developed ex US 1000 Index tracks the performance of the largest developed market equities, excluding the US, based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.

Cost & Other Expenses

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.

Operating expenses on an annual basis are 0.43% for this ETF, which makes it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 3.01%.

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.

Taking into account individual holdings, Samsung Electronics Co Ltd (Y74718100) accounts for about 4.32% of the fund's total assets, followed by Shell Plc (SHEL) and Totalenergies Se (TTE).

The top 10 holdings account for about 14.54% of total assets under management.

Performance and Risk

Year-to-date, the Invesco RAFI Developed Markets ex-U.S. ETF has added about 22.07% so far, and is up roughly 33.38% over the last 12 months (as of 09/11/2026). PXF has traded between $60.25 $80.44 in this past 52-week period.

The fund has a beta of 0.74 and standard deviation of 15.07% for the trailing three-year period, which makes PXF a medium risk choice in this particular space. With about 1039 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco RAFI Developed Markets ex-U.S. ETF is a reasonable option for investors seeking to outperform the Foreign Large Value ETF segment of the market. However, there are other ETFs in the space which investors could consider.

Vanguard International High Dividend Yield Index Fund ETF Shares (VYMI) tracks FTSE All-World ex US High Dividend Yield Index and the Schwab Fundamental International Equity ETF (FNDF) tracks Russell RAFI Developed ex US Large Co. Index (Net). Vanguard International High Dividend Yield Index Fund ETF Shares has $21.77 billion in assets, Schwab Fundamental International Equity ETF has $26.05 billion. VYMI has an expense ratio of 0.07% and FNDF changes 0.25%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Foreign Large Value ETF

Bottom Line

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.

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Invesco RAFI Developed Markets ex-U.S. ETF (PXF): ETF Research Reports

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

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