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Invesco FTSE RAFI US 1000 ETF: Performance & Key Insights

Invesco FTSE RAFI US 1000 ETF highlights trends in the Large Cap Value market. With assets over $7.37 billion, it provides stable cash flows but has seen a slight loss this year. Investors should evaluate its 1.80% yield and 0.39% expense ratio for long-term gains.

Date: 
AI Rating:   6

Performance Overview
The Invesco FTSE RAFI US 1000 ETF (PRF), with assets over $7.37 billion, aims to offer broad exposure to large cap value stocks but has reported a -1.31% loss year-to-date. Last year it gained about 8.57%, indicating high volatility in its performance.

Expense Ratio and Dividend Yield
Featuring an annual operating expense ratio of 0.39%, it aligns well with similar funds, which is advantageous for investors seeking low-cost options. The ETF provides a 12-month trailing dividend yield of 1.80%, which could attract income-focused investors.

Sector Exposure
The ETF primarily invests in Financials (21.80% allocation), highlighting a strong reliance on this sector. Major holdings include JPMorgan Chase & Co. (2.42%), Apple Inc., and Berkshire Hathaway Inc. An exposure to such stable companies can positively influence long-term investment strategies.

Risk Factors
The ETF has a low beta of 0.98 and a standard deviation of 15.11%, categorizing it as medium risk. The diversification across about 1003 holdings helps mitigate company-specific risks, which could appeal to cautious investors. However, this also indicates potential for lesser gains during market upturns.

Conclusion
Overall, the Invesco FTSE RAFI US 1000 ETF provides a balanced approach to value investing in large caps. While the year-to-date performance is disappointing, its stable dividend yield and expense ratio align positively with long-term investment objectives. Investors should weigh the risks against the expected returns.

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