(PRFZ) Invesco FTSE RAFI US 1500 - Ratings and Ratios

The Invesco FTSE RAFI US1500 Small-Mid ETF (PRFZ) is an exchange-traded fund that tracks the FTSE RAFI US 1500 Small-Mid Index, which is comprised of approximately 1,500 small- and medium-sized U.S. companies selected based on fundamental measures of firm size, including book value, cash flow, sales, and dividends. This approach deviates from traditional market-capitalization-weighted indices, potentially offering a more comprehensive representation of the underlying companies financial health.

By investing at least 90% of its total assets in the securities that make up the underlying index, PRFZ provides investors with a diversified portfolio that captures the performance of smaller U.S. companies. The funds underlying index is rebalanced annually to ensure that the constituent companies continue to meet the specified fundamental criteria, potentially reducing the impact of market volatility and emphasizing companies with strong financial fundamentals.

Analyzing the funds recent performance, we observe that the current price of $40.16 is above its 20-day simple moving average (SMA) of $39.54 and 50-day SMA of $37.73, indicating a positive short-term trend. However, it is slightly below its 200-day SMA of $40.57, suggesting a potential resistance level. The average true range (ATR) of 1.40% indicates moderate volatility, and the 52-week high and low of $45.09 and $33.13, respectively, demonstrate the funds price range over the past year.

With assets under management (AUM) of $2.32 billion, PRFZ has a significant presence in the market, which can contribute to liquidity and potentially reduce trading costs. Considering the funds underlying index and its rebalancing mechanism, we can forecast that PRFZ may continue to outperform traditional market-capitalization-weighted indices in the small- and mid-cap space, particularly if the fundamental measures used to select constituent companies continue to drive long-term value creation.

Based on the technical and fundamental data, a potential forecast for PRFZ is that it may experience a moderate increase in value over the next quarter, driven by the continued rebalancing of its underlying index and the overall performance of the U.S. small- and mid-cap market. If the current trend continues, PRFZ may potentially reach $42.50 within the next 3-6 months, representing a 5.8% increase from its current price. However, this forecast is contingent upon various market and economic factors, and actual performance may vary.