The Invesco RAFI US 1000 ETF (PRF) was launched on 12/19/2005, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Invesco. It has amassed assets over $9.77 billion, making it one of the larger ETFs in the Style Box - Large Cap Value. Before fees and expenses, this particular fund seeks to match the performance of the FTSE RAFI US 1000 Index.
The RAFI Fundamental Select US 1000 Index tracks the performance of the largest US equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.34% for this ETF, which makes it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 1.36%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 21.9% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Financials and Healthcare round out the top three.
Looking at individual holdings, Alphabet Inc (GOOGL) accounts for about 4.36% of total assets, followed by Apple Inc (AAPL) and Intel Corp (INTC).
The top 10 holdings account for about 23.53% of total assets under management.
Performance and Risk
The ETF has gained about 16.73% so far this year and it's up approximately 28.71% in the last one year (as of 07/15/2026). In the past 52-week period, it has traded between $42.04 and $54.48
The fund has a beta of 0.87 and standard deviation of 12.92% for the trailing three-year period, which makes PRF a medium risk choice in this particular space. With about 1004 holdings, it effectively diversifies company-specific risk .
Alternatives
Invesco RAFI US 1000 ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $98.01 billion in assets, Vanguard Value Index Fund ETF Shares has $186.63 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Value
Bottom Line
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Invesco RAFI US 1000 ETF (PRF): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).