Should Invesco S&P SmallCap Value with Momentum ETF (XSVM) Be on Your Investing Radar?

If you're interested in broad exposure to the Small Cap Value segment of the US equity market, look no further than the Invesco S&P SmallCap Value with Momentum ETF (XSVM), a passively managed exchange traded fund launched on March 3, 2005.The fund is sponsored by Invesco. It has amassed assets over $641.67 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 ValueSitting 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.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. 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. CostsCost 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 0.37%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.78%.Sector Exposure and Top HoldingsWhile 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 Financials sector -- about 43.4% of the portfolio. Consumer Discretionary and Information Technology round out the top three.Looking at individual holdings, Andersons Inc/the (ANDE) accounts for about 1.82% of total assets, followed by Stonex Group Inc (SNEX) and United Natural Foods Inc (UNFI).The top 10 holdings account for about 14.7% of total assets under management.Performance and RiskXSVM seeks to match the performance of the S&P 600 HIGH MOMENTUM VALUE INDEX before fees and expenses. The S&P 600 High Momentum Value Index is composed of securities with strong value characteristics selected from the Russell 2000 Index.The ETF has gained about 23.1% so far this year and is up roughly 39.32% in the last one year (as of 06/26/2026). In the past 52-week period, it has traded between $51.33 and $69.74.The ETF has a beta of 1.00 and standard deviation of 20.46% for the trailing three-year period. With about 120 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P SmallCap Value with Momentum 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, XSVM is a good option for those seeking exposure to the Style Box - Small Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value Index Fund ETF Shares (VBR) track a similar index. While iShares Russell 2000 Value ETF has $14.46 billion in assets, Vanguard Small-Cap Value Index Fund ETF Shares has $36.67 billion. IWN has an expense ratio of 0.24% and VBR charges 0.05%.Bottom-LinePassively 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.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