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

Core Viewpoint - The Invesco S&P MidCap Value with Momentum ETF (XMVM) is designed to provide broad exposure to the Mid Cap Value segment of the US equity market, with assets over $268.40 million, making it an average-sized ETF in this category [1] Group 1: Mid Cap Value Characteristics - Mid cap companies have market capitalizations between $2 billion and $10 billion, offering a balance of growth potential and stability compared to large and small cap companies [2] - Value stocks typically have lower price-to-earnings and price-to-book ratios, but also lower sales and earnings growth rates; historically, value stocks have outperformed growth stocks in most markets [3] Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.39% and a 12-month trailing dividend yield of 2.07%, which is competitive within its peer group [4] - XMVM aims to match the performance of the S&P MIDCAP 400 HIGH MOMENTUM VALUE INDEX, having gained approximately 5.31% year-to-date and 10.17% over the past year as of July 15, 2025 [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 46.60% of the portfolio, with Consumer Discretionary and Industrials following [5] - Avnet Inc (AVT) represents about 2.77% of total assets, with the top 10 holdings accounting for approximately 21.15% of total assets under management [6] Group 4: Risk and Alternatives - XMVM has a beta of 1.08 and a standard deviation of 21.28% over the trailing three-year period, indicating effective diversification of company-specific risk with around 80 holdings [8] - Alternatives to XMVM include the iShares Russell Mid-Cap Value ETF (IWS) and the Vanguard Mid-Cap Value ETF (VOE), which have larger asset bases and lower expense ratios [11]