This is a passive ETF that selects only stocks with pronounced value characteristics from the U.S. mid-cap index. It concentrates on undervalued mid-cap stocks with a strong value orientation and excludes stocks with mixed growth characteristics, so it reflects a pure value style.

It suits value-oriented investors who want concentrated exposure to mid-cap value stocks with a pure value style and are willing to accept mid-cap volatility.

It is a passive (index-tracking) ETF managed by Invesco.

From the U.S. mid-cap index, it selects only stocks with distinct undervaluation metrics and weights them by value score. It excludes stocks with mixed growth characteristics and concentrates on mid-caps with a strong value orientation, giving it a structure that reflects the value style more purely than a general mid-cap value index.

• Reflects the value style purely
• Weights mid-cap stocks by value score

Assets under management (AUM) stand at $339.9M, and the total expense ratio is 0.35% per year.

The main point of comparison is that, versus large-cap value ETFs and general mid-cap value ETFs, it reflects the value style more purely.

U.S. mid-cap value stocks are sensitive to interest rates, the economic cycle, and style rotation. Value strategies tend to be strong when value stocks are in favor and weak when growth stocks lead the market. Because of its pure value focus, its performance can differ from that of market-cap-weighted indexes.

Fund flows into mid-cap value stocks diverge depending on style rotation, risk appetite, and the interest rate environment, and money sometimes moves into related products when interest in value investing rises. It is also worth noting that performance varies with interest rates and style rotation.

Its strengths are a pure value style and mid-cap exposure, while weakness in growth-led markets, mid-cap volatility, and tracking differences are points to consider.

For exposure to general mid-cap value stocks with mixed styles, direct substitutes include IWS and VOE, and for another form of mid-cap value exposure, products such as IJJ are also worth comparing. The three products shown in the table, VTV, IWD and IVE, all invest in large-cap value stocks, so they differ in mid-cap focus and market capitalization range. This ETF's distinguishing criterion is that it reflects the value style purely within mid-cap stocks.

Here are the points to check before investing in RFV. The pure value style and mid-cap exposure are attractive, but relative weakness when growth stocks lead, mid-cap volatility, and tracking differences should be confirmed in advance. It is also worth comparing it with large-cap value and general mid-cap value products.

Relative weakness when growth stocks lead, mid-cap volatility, and tracking differences are the main variables for long-term performance, and value screening can make its composition differ from a general mid-cap index. Given its pure value concentration, losses can be large during market crashes.

It is a suitable candidate for value-oriented investors who want concentrated exposure to mid-cap value stocks with a pure value style. If you prefer mid-cap value stocks with mixed styles, products such as IWS and VOE are options, and if you want pure value exposure, it is advisable to compare them with this product and choose accordingly.