Value Focus in US Small Caps: Invesco’s Pure-Value ETF in the Spotlight for 2026
14.02.2026 - 09:30:28
Focus on cyclically oriented segments
RZV is designed to tilt toward stocks that appear undervalued by traditional metrics such as price-to-book and price-to-earnings ratios. The fund currently comprises roughly 165 holdings, delivering diversification with clear thematic concentrations. At the end of January 2026, cyclical consumer goods represent about 30% of the portfolio, while industrials exceed 17%. Additional emphasis sits in the materials and energy sectors.
This sector mix makes the fund particularly sensitive to the health of the US domestic economy. Investors anticipate that smaller companies could benefit disproportionately from steadier industrial activity and healthier consumer demand.
Annual rebalancing on the horizon
A key upcoming event over the next several months is the annual rebalancing of the underlying index. The process reassesses the value characteristics of all constituents within the S&P SmallCap 600 and adjusts weights accordingly. Because the most pronounced value signals receive larger allocations, this rebalancing can meaningfully alter the ETF?s sector distribution.
Beyond internal reweighting, broader macro factors will shape the outlook. Trends in inflation and expectations for interest rates are especially relevant for smaller firms, many of which carry higher leverage. In general, a stable economic backdrop tends to favor domestically oriented companies over globally focused multinationals.
