Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the Invesco S&P SmallCap 600 Pure Value ETF (RZV) is a passively managed exchange traded fund launched on 03/01/2006.

The fund is sponsored by Invesco. It has amassed assets over $200.57 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 are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 0.94%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, 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 25.20% of the portfolio. Financials and Consumer Staples round out the top three.

Looking at individual holdings, Spartannash Co (SPTN) accounts for about 1.99% of total assets, followed by Proassurance Corp (PRA) and Par Pacific Holdings Inc (PARR).

The top 10 holdings account for about 16.48% 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 has lost about -9.94% so far this year and is down about -3.25% in the last one year (as of 05/14/2025). In the past 52-week period, it has traded between $83.11 and $119.36.

The ETF has a beta of 1.20 and standard deviation of 25.18% for the trailing three-year period, making it a high risk choice in the space. With about 147 holdings, it effectively diversifies company-specific risk.