(PXF) FTSE RAFI Developed Markets - Overview

The Invesco FTSE RAFI Developed Markets ex-U.S. ETF (ticker PXF) seeks to replicate an index of roughly 1,000 large-cap stocks from developed markets outside the United States. The index weights constituents by four fundamental size measures-book value + intangibles, adjusted cash flow, adjusted sales, and dividend + buybacks-so the fund is positioned as a “value-tilted” exposure to non-U.S. equities.

Key characteristics (as of the most recent filing):

• Expense ratio ≈ 0.30 % (typical for a multi-asset, fundamentally weighted ETF).
• Assets under management ≈ $1.2 bn, indicating moderate liquidity but still sufficient for institutional investors.
• Top sector allocations (Q4 2025): Financials ≈ 22 %, Consumer Staples ≈ 18 %, and Industrials ≈ 15 %, reflecting the index’s bias toward stable, cash-generating businesses.

Economic drivers that can materially affect PXF’s performance include: (1) global interest-rate trends, which influence the cost of capital and therefore the valuation of cash-flow-based metrics; (2) currency fluctuations, especially the euro and yen, because the fund’s holdings are denominated in multiple foreign currencies; and (3) the health of mature economies (e.g., Europe, Japan, Canada), where earnings growth tends to be slower but dividend yields are relatively higher.

Assumption: The fund will maintain at least 90 % of assets in the index constituents, as required by its prospectus. Uncertainty remains around the durability of the “value” premium in an environment of prolonged low rates and high inflation, which could compress book-value multiples.

If you want a data-rich, factor-level breakdown of PXF’s risk-adjusted returns, a quick look at ValueRay’s analytics platform can provide the deeper insight you need.