Invesco S&P 500 Pure Value ETF (NYSE Arca:RPV) offers investors a targeted way to access some of the most undervalued stocks within the S&P 500. Unlike broader value funds, this ETF focuses exclusively on companies with the highest value scores based on metrics like price-to-book, price-to-earnings, and price-to-sales ratios. This approach creates a concentrated portfolio that tilts heavily toward sectors such as financials, energy, and consumer discretionary—industries that historically benefit from economic recoveries and rising interest rates.
As of early 2025, the ETF had 110 holdings in its portfolio, with names like CVS Health (NYSE:CVS), Ford Motor (NYSE:F), and Tyson Foods (NYSE:TSN) among its top positions. While the fund’s strategy can lead to short-term volatility, it offers meaningful upside potential in the long run, especially when undervalued sectors come back into favor with investors, particularly as economic conditions improve.
Its focus on deeply discounted companies allowed it to benefit as the market rotates away from expensive growth names and toward sectors with stronger valuations and improving fundamentals, and this may happen as investors start to worry about the potential for a recession and a market crash.
The ETF’s expense ratio of 0.35% is reasonable given the solid mix of value stocks it gives you exposure to. For value-oriented investors seeking an ETF that stays true to the core principles of value investing, Invesco S&P 500 Pure Value ETF stands out. It could appeal to those who believe that cyclical sectors and beaten-down stocks still offer room for recovery and growth.
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