Should Invesco RAFI US 1000 ETF (PRF) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the Invesco RAFI US 1000 ETF (PRF) is a passively managed exchange traded fund launched on December 19, 2005.The fund is sponsored by Invesco. It has amassed assets over $9.52 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that find themselves in the large cap category typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.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. CostsInvestors 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 0.34%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.39%.Sector Exposure and Top HoldingsEven 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 Information Technology sector -- about 22.5% of the portfolio. Financials and Healthcare round out the top three.Looking at individual holdings, Apple Inc (AAPL) accounts for about 4.09% of total assets, followed by Alphabet Inc (GOOGL) and Exxon Mobil Corp (XOM).The top 10 holdings account for about 22.34% of total assets under management.Performance and RiskPRF seeks to match the performance of the FTSE RAFI US 1000 Index before fees and expenses. The RAFI Fundamental Select US 1000 Index tracks the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.The ETF has added about 13.8% so far this year and is up roughly 33.78% in the last one year (as of 05/25/2026). In the past 52-week period, it has traded between $40.17 and $53.21.The ETF has a beta of 0.88 and standard deviation of 12.97% for the trailing three-year period, making it a medium risk choice in the space. With about 1009 holdings, it effectively diversifies company-specific risk.AlternativesInvesco RAFI US 1000 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, PRF is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $94.87 billion in assets, Vanguard Value Index Fund ETF Shares has $176.91 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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 InsightsZacks' 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 >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks