Should Invesco RAFI US 1500 Small-Mid ETF (PRFZ) Be on Your Investing Radar?
The fund is sponsored by Invesco. It has amassed assets over $2.34 billion, making it one of the larger ETFs attempting to match the Small Cap Blend segment of the US equity market.
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.34%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.41%.
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 Financials sector--about 20% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Applovin Corp (APP) accounts for about 0.61% of total assets, followed by Palantir Technologies Inc (PLTR) and Carvana Co (CVNA).
The top 10 holdings account for about 4.31% of total assets under management.
PRFZ seeks to match the performance of the FTSE RAFI US 1500 Small-Mid Index before fees and expenses. The RAFI Fundamental Select US 1500 Index tracks the performance of small and medium-sized US companies, based on the four fundamental measures of size: book value, cash flow, sales and dividends.
The ETF has lost about -4.24% so far this year and was up about 2.10% in the last one year (as of 05/21/2025). In the past 52-week period, it has traded between $33.13 and $45.39.
The ETF has a beta of 1.10 and standard deviation of 22.02% for the trailing three-year period, making it a medium risk choice in the space. With about 1732 holdings, it effectively diversifies company-specific risk.
Invesco RAFI US 1500 Small-Mid 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, PRFZ is a sufficient option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $63.93 billion in assets, iShares Core S&P Small-Cap ETF has $78.51 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.
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.
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 RAFI US 1500 Small-Mid ETF (PRFZ): ETF Research Reports
AppLovin Corporation (APP) : Free Stock Analysis Report
iShares Russell 2000 ETF (IWM): ETF Research Reports
iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports
Carvana Co. (CVNA) : Free Stock Analysis Report
Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Even at an All-Time High, The Vanguard S&P 500 ETF Isn't as Expensive as It Seems
Key Points The S&P 500 has gotten more expensive because of outsized gains in recent years. The index is much more growth-oriented than in the past, which helps justify a higher valuation. The S&P 500's composition has also made it less diversified and more prone to volatility. 10 stocks we like better than Vanguard S&P 500 ETF › Invest in Gold American Hartford Gold: #1 Precious Metals Dealer in the Nation Priority Gold: Up to $15k in Free Silver + Zero Account Fees on Qualifying Purchase Thor Metals Group: Best Overall Gold IRA Exchange-traded funds (ETFs) can provide low-cost ways to get exposure to a diversified basket of stocks. With over $1.5 trillion in assets, the Vanguard S&P 500 ETF (NYSEMKT: VOO) is the largest S&P 500 (SNPINDEX: ^GSPC) fund by net assets -- even larger than the iShares Core S&P 500 ETF and the SPDR S&P 500 ETF Trust . The Vanguard S&P 500 ETF is hovering around an all-time high at the time of this writing -- up 8.5% year to date and a whopping 66.4% since the start of 2023. But S&P 500 earnings haven't grown nearly as fast, which has pushed up the valuation of the index. Here's why the S&P 500 isn't as expensive as it seems, including a few reasons why it could still be a good buy at an all-time high. Understanding the S&P 500's valuation One simple way to measure the S&P 500's valuation is to look at the price appreciation of the index compared to changes in its operating earnings per share (EPS). Operating earnings can be a better metric for tracking the valuation of the S&P 500 because they exclude one-time charges or gains that don't accurately represent the performance of the underlying businesses. Here's a look at how the S&P 500 has traded in comparison to its operating EPS over different intervals. S&P 500 1 Year 3 Years 5 Years 10 Years 20 Years Level 10.7% 77.9% 89.7% 232.3% 382.4% Operating EPS 3.5% 21.6% 61.5% 140.6% 268.3% Data source: YCharts. As you can see in the table, the S&P 500 is rising faster than operating earnings, which has expanded its valuation. Overall, the businesses that make up the S&P 500 are relatively expensive based on their performance. Another way of looking at S&P 500 valuation is forward earnings projections. The forward price-to-earnings (P/E) ratio of the S&P 500 takes the current price and divides it by analyst consensus estimates for earnings over the next year rather than the trailing 12 months. According to data from FactSet from Aug. 1, the forward P/E ratio of the S&P 500 is 22.2 compared to a five-year average forward P/E of 19.9 and a 10-year average forward P/E of 18.5. So the S&P 500 commands a 20% premium to its 10-year average. On the surface, it looks like the index is massively overvalued. However, the valuation of the S&P 500 and companies in general should arguably go up over time as companies become more efficient. In defense of valuation expansion The internet and the instant transfer of information have made doing business much more efficient. Just think about the time savings from sending an email versus a fax or hopping on a video call instead of traveling to meet in person. Then, there is also the transition from having several analog devices performing independent tasks -- like an alarm clock or calculator -- to having many tools available at arm's reach, all on a single mobile phone. Artificial intelligence (AI) should further increase worker productivity, and in turn, boost company performance. As companies across industries become better businesses, the overall valuation of the market should steadily tick higher. It is natural for the valuation of the S&P 500 to rise over time as growth-focused companies make up a larger portion of the index. Companies that reinvest their profits rather than distributing them to shareholders through buybacks and dividends should command higher valuations as those investments generate returns. Pros and cons of a growth-oriented stock market It's not the best idea to glance at what the valuation of the S&P 500 is today versus the average of the last decade and hastily assume the S&P 500 is overvalued without considering the valid reasons why the index is more expensive. By the same token, it's a mistake to gloss over the risks of today's market. Growth-driven companies have increased the quality of S&P 500 earnings and the projected growth rate, but they can also boost market volatility. A cyclical downturn in investment in the tech sector would have a sizable impact on the S&P 500, more so than when tech had a lower weight in the index. All told, the S&P 500 deserves to have a higher than historical valuation, so the ETFs that track the index aren't as expensive as they seem. However, don't be surprised if the index makes sharper moves to the upside and the downside, given its composition. Do the experts think Vanguard S&P 500 ETF is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Vanguard S&P 500 ETF make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,062% vs. just 185% for the S&P — that is beating the market by 877.34%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,113,059!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Daniel Foelber has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. Even at an All-Time High, The Vanguard S&P 500 ETF Isn't as Expensive as It Seems was originally published by The Motley Fool
Yahoo
9 hours ago
- Yahoo
Zacks Investment Ideas feature highlights: IWM, ETHA, IBIT and XXRP
For Immediate Release Chicago, IL – August 14, 2025– Today, Zacks Investment Ideas feature highlights iShares Russell 2000 Index ETF IWM, iShares Ethereum ETF ETHA, the iShares Bitcoin ETF IBIT and the Teucrum 2x Long XRP ETF XXRP. Do Lower Rates Suggest Small-Cap Stocks Are in Favor? Tariff Tantrum: Inflation Fears Appear Overblown Thus Far The story of 2025 thus far is President Trump's 'Liberation Day' tariffs. Initially, the major US indices, like the Nasdaq Composite, swooned more than 10% in two weeks after the April 2nd tariff announcement. While the announcement was known to most on Wall Street, the magnitude of the tariffs was far more than most investors anticipated. However, instead of implementing the full-blown, sky-high tariffs, President Trump and his trade negotiators instead chose a "shock and bore" approach, leveraging the US's massive market to garner favorable trade deals while still leaving a base tariff rate of at least 10% on most countries to bring in much-needed government revenue. The fear from politicians on both sides of the aisle, famous investors, retail, and Fed Chair Jerome Powell was that the tariffs would lead to rampant inflation. Thus far, the data suggests this has not been the case. While inflation came in slightly ahead of expectations last report, this time, it beat expectations ,leading to yet another rip-roaring rally on Wall Street today, with nearly 80% of stocks rising for the session as volume picked up. Small Caps React Positively to CPI Tuesday, the iShares Russell 2000 Index ETF bolted ~3% as volume increased 25% versus the 50-day average. Following the day's bullish inflation report, Polymarket, the world's largest betting website, attributes an 81% chance that Fed Chair Jerome Powell will finally cut interest rates by 25 Bps on September 17th. Interest Rate Cuts are Bullish for Small Caps Because small caps are more reliant on debt than mega-cap stocks, rate cuts are bullish for small cap companies as these companies pay reduced interest expenses on debt. Additionally, rate cuts tend to bolster the domestic economy, on which most small cap stocks rely on for business. Small Cap Rotation With elevated interest rates, small caps have been in the proverbial "dog house with investors." However, with Nasdaq valuations stretching ever higher and the Russell reasonably valued, rotation is likely to occur as red-hot tech stocks take a break. Small Caps: A Generational Breakout? IWM has had several false breakouts, but Tuesday's breakout feels different for a few reasons. IWM is above its key moving averages for a change, has the rate environment wind at its back, and saw volume increase 24% above the 50-day norm today – a sign of demand. Crypto Benefits from Lower Rates as Well In addition to small caps, crypto assets tend to perform well in rate cut environments. Even before any cuts have been announced crypto ETFs are acting well, including the iShares Ethereum ETF, the iShares Bitcoin ETF and the Teucrum 2x Long XRP ETF. Bottom Line The current market environment, characterized by easing inflation fears and a potential shift in Federal Reserve policy toward lower interest rates, is a favorable backdrop for small-cap stocks. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release. 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 iShares Russell 2000 ETF (IWM): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
18 hours ago
- Business Insider
Post Q2 Earnings, Let's Look at Who Owns Rigetti Computing Stock (RGTI)
Rigetti Computing (RGTI) stock is down over 2% in the pre-market today after it reported weaker-than-expected Q2 2025 results. The quantum computing company posted a loss per share of $0.13, wider than the Street's expectations of a $0.05 loss per share. Also, the company's revenues declined 41.6% year-over-year and came in below the consensus estimate of $1.87 million. Interestingly, despite weak Q2 results, several Top analysts raised their price targets and maintained their Buy ratings on the stock. With these developments in mind, let's explore RGTI's ownership structure using TipRanks' Ownership tools. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Digging Deeper into RGTI's Ownership Structure Looking closely at top shareholders, Vanguard owns the highest stake in RGTI at 6.55%. Next up is Bessemer Venture Partners X L.P., which holds a 6.47% stake in the company. Among the top ETF holders, the Vanguard Total Stock Market ETF (VTI) owns a 2.93% stake in Rigetti Computing stock, followed by the iShares Russell 2000 ETF (IWM) with a 2.46% stake. Moving to mutual funds, Vanguard Index Funds holds about 4.19% of RGTI. Meanwhile, Fidelity Salem Street Trust owns 0.74% of the stock. Is RGTI Stock a Good Buy? Turning to Wall Street, Rigetti stock has a Strong Buy consensus rating based on seven Buys and one Hold assigned in the last three months. At $16.75, the average RGTI stock price target implies a 3.4% upside potential. Conclusion
