The Invesco RAFI US 1000 ETF (PRF), a smart beta fund with over $8.17 billion in AUM, tracks the fundamentally-weighted FTSE RAFI US 1000 Index, offering large-cap value exposure with a 0.33% expense ratio. As of June 25, 2025, PRF has returned 11.69% over the last year, exhibiting medium risk and a primary allocation to Financials. However, its expense ratio is significantly higher than larger peer alternatives like SCHD (0.06%) and VTV (0.04%), presenting a cost consideration for investors seeking similar market segment exposure.
The Invesco RAFI US 1000 ETF (PRF) is a significant smart beta fund within the large-cap value category, holding over $8.17 billion in assets. Its core strategy is based on the FTSE RAFI US 1000 Index, which selects and weights its approximately 1092 holdings based on four fundamental metrics: book value, cash flow, sales, and dividends, rather than market capitalization. This methodology leads to a distinct portfolio composition with a heavy allocation to the Financials sector (21.5%). The fund has demonstrated solid performance, with an 11.69% return over the last year, and exhibits a medium-risk profile with a beta of 0.91 and a standard deviation of 15.31%. A critical consideration, however, is its 0.33% expense ratio, which is substantially higher than that of larger, passive competitors like the Schwab U.S. Dividend Equity ETF (SCHD) at 0.06% and the Vanguard Value ETF (VTV) at 0.04%. This cost differential presents a key trade-off for investors weighing PRF's unique fundamental approach against the lower-cost, market-cap weighted alternatives.
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moderately positive
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0.50
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