Looking for broad exposure to the Mid Cap Value segment of the US equity market? You should consider the Invesco S&P MidCap 400 Pure Value ETF (RFV), a passively managed exchange traded fund launched on March 1, 2006.

The fund is sponsored by Invesco. It has amassed assets over $338.83 million, making it one of the average sized ETFs attempting to match the Mid Cap Value segment of the US equity market.

Why Mid Cap Value

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.

While 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. Value stocks have outperformed growth stocks in nearly all markets when you consider long-term performance, growth stocks are more likely to outpace value stocks in strong bull markets.

Costs

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 1.21%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Consumer Discretionary sector -- about 21.1% of the portfolio. Financials and Energy round out the top three.

Looking at individual holdings, Avnet Inc (AVT) accounts for about 3.81% of total assets, followed by Arrow Electronics Inc (ARW) and Pbf Energy Inc (PBF).

The top 10 holdings account for about 24.79% of total assets under management.

Performance and Risk

RFV seeks to match the performance of the S&P MidCap 400 Pure Value Index before fees and expenses. The S&P MidCap 400 Pure Value Index measures the performance of securities that exhibit strong value characteristics in the S&P MidCap 400 Index.

The ETF has added about 18.29% so far this year and is up roughly 26.1% in the last one year (as of 08/10/2026). In the past 52-week period, it has traded between $119.35 and $152.16.

The ETF has a beta of 1.05 and standard deviation of 20.23% for the trailing three-year period, making it a high risk choice in the space. With about 99 holdings, it effectively diversifies company-specific risk.

Alternatives

Invesco S&P MidCap 400 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, RFV is a good option for those seeking exposure to the Style Box - Mid Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Morningstar Mid-Cap Value ETF (VOE) track a similar index. While iShares Russell Mid-Cap Value ETF has $15.92 billion in assets, Vanguard Morningstar Mid-Cap Value ETF has $24.18 billion. IWS has an expense ratio of 0.23% and VOE charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.

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Invesco S&P MidCap 400 Pure Value ETF (RFV): ETF Research Reports

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

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