The Invesco S&P SmallCap 600 Revenue ETF (RWJ) offers a unique investment opportunity in small-cap stocks
With over $1.72 billion in assets, RWJ is one of the bigger players in this space. Small-cap companies, which have market caps under $2 billion, can be high-potential investments, but they also come with a bit more risk compared to larger firms.
This ETF holds a mix of growth and value stocks, which is why it’s called a blend. When you’re looking at ETFs, keep an eye on the expense ratios. RWJ has an annual operating expense of 0.39%, which is pretty standard for its peers. Plus, it offers a 12-month trailing dividend yield of 1.17%.
In terms of sector exposure, RWJ leans heavily into Consumer Discretionary, making up about 24% of its portfolio. The top three sectors also include Industrials and Financials. Notably, United Natural Foods Inc (UNFI) is a significant holding, accounting for about 3.36% of total assets.
When it comes to performance, RWJ aims to match the OFI Revenue Weighted Small Cap Index. So far this year, it’s down about 1.90%, but it’s up around 13.28% over the past year. The ETF has a beta of 1.27, indicating it’s a bit more volatile than the market.
If you’re considering alternatives, you might want to check out the iShares Russell 2000 ETF (IWM) or the iShares Core S&P Small-Cap ETF (IJR). Both track similar indices and have lower expense ratios.
Overall, RWJ is a solid option for those looking to invest in small-cap stocks. With its low costs and transparency, it’s a great choice for long-term investors. If you want to learn more about ETFs, check out Zacks ETF Center for the latest insights and recommendations.
