Should Invesco S&P SmallCap 600 Revenue ETF (RWJ) Be on Your Investing Radar?

Core Insights - The Invesco S&P SmallCap 600 Revenue ETF (RWJ) is designed to provide broad exposure to the Small Cap Blend segment of the US equity market, with assets exceeding $1.53 billion, making it one of the larger ETFs in this category [1] Group 1: Investment Potential - Small cap companies, defined as those with market capitalizations below $2 billion, present high potential but also come with higher risks [2] - Blend ETFs typically hold a mix of growth and value stocks, showcasing characteristics of both investment styles [2] Group 2: Costs and Performance - The annual operating expenses for RWJ are 0.39%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 1.15% [3] - RWJ has experienced a loss of approximately -2.35% year-to-date and a gain of about 4.73% over the past year, with a trading range between $34.78 and $49.46 in the last 52 weeks [7] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of about 26.50% to the Consumer Discretionary sector, with Industrials and Financials also being prominent sectors [4] - World Kinect Corp (WKC) constitutes about 3.10% of total assets, with the top 10 holdings making up approximately 15.12% of total assets under management [5] Group 4: Risk and Alternatives - RWJ aims to match the performance of the OFI Revenue Weighted Small Cap Index, which re-weights constituents based on revenue, with a maximum weighting of 5% per company [6] - Alternatives to RWJ include the iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR), which have larger asset bases of $65.35 billion and $81.42 billion respectively, and lower expense ratios of 0.19% and 0.06% [9]