The Invesco FTSE RAFI US 1500 Small-Mid ETF offers diverse exposure to small-cap stocks, making it a potential investment option for many.

City: New York. The Invesco FTSE RAFI US 1500 Small-Mid ETF, or PRFZ, launched back in 2006. It’s designed to give you broad access to the small-cap blend segment of the U.S. stock market.
This fund is backed by Invesco and has gathered over $2.54 billion in assets. That makes it one of the bigger players in the small-cap blend ETF space.
So, why consider small-cap blend stocks? Well, companies with market caps under $2 billion often have more growth potential than larger firms, but they also come with higher risks.
Blend ETFs typically mix growth and value stocks, which can be a smart way to diversify your investments.
When it comes to costs, this ETF has an expense ratio of 0.39%. That’s pretty standard for similar funds, so it’s not too pricey.
It also offers a 12-month trailing dividend yield of 1.45%, which is a nice perk for investors looking for income.
Before jumping in, it’s wise to check out what the ETF holds. This one has a big chunk—about 20%—in the Financials sector, with Industrials and Consumer Discretionary also making the top three.
In terms of individual stocks, Applovin Corp is about 0.72% of the total assets, followed by Brinker International and Carvana. The top ten holdings make up around 4.3% of the total assets.
PRFZ aims to match the performance of the FTSE RAFI US 1500 Small-Mid Index, which includes around 1,500 U.S. stocks. This index looks at factors like book value and cash flow to select its stocks.
This year, the ETF has dipped slightly by about -0.05%, but it was up around 17.04% over the last year. It has traded between $35.39 and $45.39 in the past 52 weeks.
With a beta of 1.19 and a standard deviation of 21.69% over three years, it’s considered a medium-risk option. Plus, with about 1,446 holdings, it helps spread out the risk of any single company.
PRFZ has a Zacks ETF Rank of 3, which means it’s a hold. If you’re looking for small-cap blend exposure, it’s a solid choice, but there are other options too.
For instance, the iShares Russell 2000 ETF and the iShares Core S&P Small-Cap ETF are similar. The Russell 2000 has $71.09 billion in assets, while the S&P Small-Cap ETF has $87.24 billion, with lower expense ratios.
In the end, passively managed ETFs like this one are gaining popularity. They offer low costs, transparency, and flexibility, making them great for long-term investors.
If you want to dive deeper into ETFs, check out Zacks ETF Center for more info and updates.