Core Viewpoint - The Invesco RAFI US 1000 ETF (PRF) is a smart beta ETF that aims to provide broad exposure to the large-cap value segment of the market, managed by Invesco with over $8.09 billion in assets [5][10]. Fund Overview - Launched on December 19, 2005, PRF seeks to match the performance of the FTSE RAFI US 1000 Index, which selects large US equities based on fundamental measures such as book value, cash flow, sales, and dividends [5]. - The ETF has an annual operating expense ratio of 0.33% and a 12-month trailing dividend yield of 1.69% [6]. Sector Exposure and Holdings - The ETF has a significant allocation in the Financials sector, comprising approximately 20.8% of the portfolio, followed by Information Technology and Healthcare [7]. - Major holdings include Apple Inc (3.2% of total assets), Alphabet Inc, and Microsoft Corp, with the top 10 holdings accounting for about 20.84% of total assets [8]. Performance Metrics - As of August 28, 2025, PRF has gained approximately 10.72% year-to-date and 12.96% over the past year, with a trading range between $35.77 and $44.30 in the last 52 weeks [10]. - The ETF has a beta of 0.91 and a standard deviation of 14.94% over the trailing three-year period, indicating medium risk [10]. Alternatives - Other ETFs in the large-cap value space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have significantly larger assets and lower expense ratios [12].

Core Viewpoint - The Invesco RAFI US 1000 ETF (PRF) is designed to provide broad exposure to the Large Cap Value segment of the US equity market, with significant assets under management and a focus on stable, lower-risk investments [1][2]. Group 1: Fund Overview - The Invesco RAFI US 1000 ETF was launched on December 19, 2005, and has accumulated over $7.83 billion in assets, making it one of the larger ETFs in its category [1]. - The ETF targets companies with a market capitalization above $10 billion, which are generally considered stable with more reliable cash flows compared to mid and small cap companies [2]. Group 2: Investment Characteristics - Value stocks, which the ETF primarily invests in, typically have lower price-to-earnings and price-to-book ratios, as well as lower sales and earnings growth rates [3]. - Historically, value stocks have outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 3: Costs and Performance - The ETF has an annual operating expense ratio of 0.33% and a 12-month trailing dividend yield of 1.76%, which is competitive within its peer group [4]. - As of July 17, 2025, the ETF has returned approximately 6.18% year-to-date and 8.97% over the past year, with a trading range between $35.77 and $43.05 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 21.80% of the portfolio, followed by Information Technology and Healthcare [5]. - Microsoft Corp (MSFT) represents about 2.39% of total assets, with the top 10 holdings accounting for approximately 19.42% of total assets under management [6]. Group 5: Risk Profile - The ETF has a beta of 0.91 and a standard deviation of 15.22% over the trailing three-year period, indicating a medium risk profile [8]. - With around 1,092 holdings, the ETF effectively diversifies company-specific risk [8]. Group 6: Alternatives - The Invesco RAFI US 1000 ETF has a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Large Cap Value segment [9]. - Alternative ETFs in this space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios [10]. Group 7: Conclusion - Passively managed ETFs like the Invesco RAFI US 1000 ETF are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [11].