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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’s rating suggests it is a solid but not top-tier small-cap ETF, with its performance driven by several strong holdings alongside some weaker ones. Higher-quality positions like Group 1 Automotive, Lincoln National, and Asbury support the fund through solid revenue growth, attractive valuations, and positive corporate developments, while names such as World Kinect, United Natural Foods, and ManpowerGroup face profitability and revenue pressures that weigh on the overall picture. The main risk factor is the fund’s focus on smaller companies, where financial performance can be more volatile and bearish technical trends in some holdings may add short-term uncertainty.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, suggesting solid momentum in its strategy.
Revenue-Weighted Small-Cap Focus
By weighting companies based on their revenues rather than size alone, the fund tilts toward businesses with meaningful sales, which can help highlight more fundamentally driven small-cap names.
Broad Sector Diversification
Holdings are spread across many sectors, with notable exposure to consumer, industrial, financial, technology, and health care companies, helping reduce reliance on any single industry.
Negative Factors
Higher Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of your returns go toward fees compared with many low-cost index funds.
Heavy U.S. Concentration
Almost all of the ETF’s assets are invested in U.S. companies, offering little geographic diversification if international markets perform differently.
Mixed Performance Among Top Holdings
While several top positions have delivered strong gains, a few key holdings have shown weaker or negative performance, which can create more uneven results for the fund.

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 invests in many smaller U.S. companies across sectors like consumer, industrials, and technology, with well-known names such as CarMax and Kohl’s among its holdings. Because it focuses on small companies and weights them by how much revenue they generate, investors may use RWJ to seek long-term growth and broader diversification beyond large, familiar stocks. A key risk is that small-cap stocks can be more volatile, so the ETF’s value can move up and down sharply with the market.
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 leans heavily into U.S. consumer and auto-related small caps, with names like CarMax and Sonic Automotive helping drive the fund as their shares have been steadily rising on solid, if imperfect, fundamentals. World Kinect has also been climbing, giving a lift from the energy and services side. On the other hand, retailers like Kohl’s are losing steam, and financials such as Lincoln National and Amentum are lagging, acting as a mild drag. Overall, the ETF is a U.S.-centric, small-cap play with a clear tilt toward cyclical consumer strength.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
World Kinect2.92%$60.54M$2.03B57.86%
51
Neutral
CarMax2.09%$43.36M$8.33B2.29%
61
Neutral
United Natural Foods1.91%$39.61M$3.01B88.19%
52
Neutral
ManpowerGroup1.80%$37.21M$2.41B33.55%
54
Neutral
Lincoln National1.56%$32.33M$8.80B23.70%
71
Outperform
Asbury1.32%$27.28M$4.34B3.89%
67
Neutral
Group 1 Automotive1.27%$26.41M$3.53B-30.09%
73
Outperform
Kohl's1.18%$24.52M$2.21B78.38%
68
Neutral
Sonic Automotive1.13%$23.39M$3.17B27.82%
61
Neutral
DXC Technology1.00%$20.81M$1.82B-12.60%
62
Neutral

RWJ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
58.55
Positive
100DMA
55.55
Positive
200DMA
52.68
Positive
Market Momentum
MACD
RSI
STOCH
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 60.33, equal to the 50-day MA of 58.55, and equal to the 200-day MA of 52.68, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$2.07B0.39%
64
Neutral
$9.10B0.25%
67
Neutral
$6.05B0.28%
64
Neutral
$4.19B0.07%
66
Neutral
$4.11B0.15%
67
Neutral
$3.75B0.59%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RWJ
Invesco S&P SmallCap 600 Revenue ETF
60.90
17.72
41.04%
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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