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

Core Viewpoint - The Invesco S&P SmallCap Value with Momentum ETF (XSVM) is a passively managed fund that aims to provide broad exposure to the Small Cap Value segment of the US equity market, with assets totaling over $583.48 million [1] Group 1: Investment Characteristics - Small cap companies, defined as those with market capitalizations below $2 billion, present higher potential returns but also increased risks [2] - Value stocks typically exhibit lower price-to-earnings and price-to-book ratios, along with lower sales and earnings growth rates, yet have historically outperformed growth stocks in most markets [2] Group 2: Costs and Performance - The annual operating expenses for XSVM are 0.36%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 2% [3] - As of August 14, 2025, XSVM has gained approximately 3.96% year-to-date and 7.17% over the past year, with a trading range between $44.22 and $60.64 in the last 52 weeks [6] Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 50.4% of the portfolio, followed by Consumer Discretionary and Industrials [4] - Spartannash Co (SPTN) represents about 1.93% of total assets, with the top 10 holdings accounting for approximately 14.88% of total assets under management [5] Group 4: Risk and Alternatives - XSVM seeks to match the performance of the S&P 600 High Momentum Value Index, which includes securities with strong value characteristics from the Russell 2000 Index, and has a beta of 1.07 and a standard deviation of 22.6% over the trailing three years [6][7] - Alternatives to XSVM include the iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR), which have larger asset bases and lower expense ratios [9]