ETFs › PRF
Invesco FTSE RAFI US 1000 ETF (PRF)
Tracks the FTSE RAFI US 1000 Index, which selects and weights stocks based on fundamental measures of company size. PRF has an expense ratio of 0.39%, which is higher than traditional market-cap weighted index funds but reasonable for its smart beta approach. The fund distributes dividends quarterly. PRF's key differentiating quality is its fundamental weighting methodology, which uses four factors: book value, cash flow, sales, and dividends. This approach aims to avoid potential overvaluation issues associated with market-cap weighting. The ETF typically holds around 1000 stocks, providing broad exposure to large and mid-cap U.S. equities. By weighting companies based on economic size rather than market price, PRF seeks to enhance returns and reduce risk compared to traditional index strategies. This fundamental indexing approach may appeal to investors looking for an alternative to market-cap weighted funds.