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RWJ - ETF AI Analysis

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RWJ

Invesco S&P SmallCap 600 Revenue ETF (RWJ)

Rating:64Neutral
Price Target:
RWJ, the Invesco S&P SmallCap 600 Revenue ETF, has a solid overall rating driven by strong contributors like Group 1 Automotive and Kohl’s, which bring solid revenue growth, strong cash flow, and supportive technical trends to the portfolio. Holdings such as World Kinect, United Natural Foods, and ManpowerGroup face profitability and revenue challenges with bearish technical signals, which likely weigh on the fund’s rating. The main risk factor is its focus on smaller companies, where several holdings show financial and momentum headwinds that can increase volatility.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Revenue-Weighted Small-Cap Exposure
By focusing on smaller U.S. companies and weighting them by revenue, the fund tilts toward businesses with meaningful sales rather than just market size.
Broad Sector Diversification
Holdings are spread across many sectors, with notable exposure to consumer cyclical, industrials, financials, and technology, which helps reduce reliance on any single industry.
Negative Factors
Higher Expense Ratio for a Passive ETF
The fund’s expense ratio is on the higher side for an index-based ETF, which can modestly reduce long-term returns compared with cheaper alternatives.
Concentration in Consumer Cyclical Stocks
A large portion of the portfolio is in consumer cyclical companies, which can be more sensitive to economic slowdowns and shifts in consumer spending.
Single-Country Risk
With almost all assets invested in U.S. stocks, the ETF offers little geographic diversification and is heavily tied to the U.S. economy and market conditions.

RWJ vs. SPDR S&P 500 ETF (SPY)

RWJ Summary

RWJ is the Invesco S&P SmallCap 600 Revenue ETF, which follows the S&P SmallCap 600 Revenue-Weighted Index. It focuses on smaller U.S. companies across many industries, including consumer, industrial, and financial businesses. Instead of weighting by size, it gives more weight to companies that bring in higher revenue. Well-known holdings include CarMax and Lincoln National. Someone might invest in RWJ for growth potential and diversification into smaller, often overlooked U.S. companies. A key risk is that small-cap stocks can be more volatile and can go up and down more sharply than larger, more established companies.
How much will it cost me?The Invesco S&P SmallCap 600 Revenue ETF (RWJ) has an expense ratio of 0.39%, which means you’ll pay $3.90 per year for every $1,000 invested. This is slightly higher than the average for ETFs because it uses an actively managed revenue-weighted strategy rather than simply tracking a standard index. This approach aims to focus on companies with strong financial fundamentals.
What would affect this ETF?RWJ's focus on U.S. small-cap companies could benefit from economic growth and innovation in sectors like Consumer Cyclical and Technology, which are heavily weighted in the ETF. However, small-cap stocks are often more sensitive to interest rate hikes and economic slowdowns, which could negatively impact their performance. Additionally, regulatory changes or sector-specific challenges in industries like Energy or Financials could influence the ETF's returns.

RWJ Top 10 Holdings

RWJ is leaning hard into U.S. small-cap consumer and industrial names, and that mix is creating a real push‑and‑pull in performance. The Andersons has been one of the fund’s bright spots, quietly climbing and helping to offset weakness elsewhere, while United Natural Foods has also been more of a steady helper than a hindrance. On the flip side, auto dealers like Group 1 Automotive and Asbury, along with Lincoln National, have been losing steam and dragging on returns. Overall, it’s a domestically focused, small-cap story with a cyclical tilt and plenty of volatility under the hood.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Molina Healthcare2.85%$48.72M$7.60B-57.72%
71
Outperform
World Kinect2.31%$39.50M$1.20B-2.42%
51
Neutral
United Natural Foods2.28%$38.90M$2.81B91.08%
52
Neutral
CarMax1.93%$33.02M$6.62B-31.66%
61
Neutral
Group 1 Automotive1.54%$26.33M$4.01B-16.51%
73
Outperform
Lincoln National1.22%$20.91M$6.50B15.93%
71
Outperform
Asbury1.16%$19.86M$3.94B-10.64%
67
Neutral
ManpowerGroup1.12%$19.11M$1.25B-47.30%
54
Neutral
Sonic Automotive1.06%$18.12M$2.28B13.28%
61
Neutral
Kohl's0.96%$16.37M$1.49B97.62%
68
Neutral

RWJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
51.57
Positive
100DMA
50.58
Positive
200DMA
48.50
Positive
Market Momentum
MACD
0.46
Negative
RSI
67.24
Neutral
STOCH
94.60
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For RWJ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 50.48, equal to the 50-day MA of 51.57, and equal to the 200-day MA of 48.50, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 67.24 is Neutral, neither overbought nor oversold. The STOCH value of 94.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RWJ.

RWJ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.72B0.39%
64
Neutral
$9.78B0.25%
67
Neutral
$4.39B0.28%
65
Neutral
$3.58B0.07%
66
Neutral
$3.45B0.15%
67
Neutral
$3.31B0.59%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RWJ
Invesco S&P SmallCap 600 Revenue ETF
53.38
16.98
46.65%
FNDA
Schwab Fundamental US Small Co. Index ETF
FESM
Fidelity Enhanced Small Cap ETF
VIOO
Vanguard S&P Small-Cap 600 ETF
SMLF
iShares MSCI USA Small-Cap Multifactor ETF
CALF
Pacer US Small Cap Cash Cows 100 ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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