Should Invesco S&P MidCap 400 Revenue ETF (RWK) Be on Your Investing Radar?

The Invesco S&P MidCap 400 Revenue ETF (RWK), with $805.60 million in assets, offers exposure to U.S. mid-cap value stocks by weighting companies based on revenue. RWK's largest sector allocation is Industrials (22.90%), and its top holding is Albertsons Cos Inc (3.27%); the fund has returned 3.02% over the past year but is down 2.65% YTD. With an expense ratio of 0.39% and a 1.20% trailing dividend yield, RWK carries a Zacks ETF Rank of 3 (Hold), suggesting it's a reasonable option for its style box, though alternatives like IWS and VOE exist with lower expense ratios.

Analysis

The Invesco S&P MidCap 400 Revenue ETF (RWK) offers exposure to the U.S. mid-cap value segment by employing a revenue-weighting methodology for constituents of the S&P MidCap 400 Index, with assets under management of $805.60 million. This passively managed fund, launched on February 22, 2008, has its largest sector allocation in Industrials at 22.90%, followed by Consumer Discretionary and Financials. Top individual holdings include Albertsons Cos Inc (ACI) at 3.27%, Performance Food Group Co (PFGC), and Td Synnex Corp (SNX), with the top 10 holdings constituting approximately 18.57% of total assets. Year-to-date, RWK has experienced a decline of -2.65%, though it has registered a gain of 3.02% over the past year as of May 30, 2025, and has traded within a 52-week range of $94.80 to $126.49. The ETF's annual operating expense ratio is 0.39%, and it offers a 12-month trailing dividend yield of 1.20%. From a risk perspective, RWK exhibits a beta of 1.17 and a standard deviation of 21.49% over the trailing three-year period, classifying it as a medium-risk investment within its category, mitigated somewhat by its diversification across approximately 401 holdings. Zacks ETF Rank assigns RWK a 3 (Hold), suggesting it is a reasonable, albeit not standout, option. Comparatively, alternative ETFs such as iShares Russell Mid-Cap Value ETF (IWS) and Vanguard Mid-Cap Value ETF (VOE) offer significantly larger AUM ($13.04 billion and $17.48 billion, respectively) and notably lower expense ratios (0.23% for IWS and 0.07% for VOE).

Key Decisions for Investors

• Investors seeking mid-cap value exposure via a revenue-weighted strategy could consider RWK, but should note its Zacks 'Hold' rating and recent YTD underperformance.
• A thorough comparison with lower-cost, market-cap weighted alternatives like IWS and VOE is warranted, particularly given RWK's 0.39% expense ratio.
• The fund's beta of 1.17 and standard deviation of 21.49% indicate a medium risk profile; investors should assess if this aligns with their tolerance, especially considering the specific revenue-weighting approach versus traditional value metrics.