RWJ: A Closer Look At Invesco S&P SmallCap 600 Revenue ETF

Summary

RWJ has been on a tear this year demonstrating that fundamentally weighted portfolios with large exposure to underappreciated names are capable of delivering solid returns.
RWJ mirrors the S&P SmallCap 600 Revenue Weighted index, a modified version of the S&P SmallCap 600.
The Quant analysis shows that RWJ’s current equity mix has a pronounced value tilt. Over 70% of its NAV is allocated to stocks that have Value Grades above B-.
The smart-beta RWJ should do well if the capital rotation continues, while its potential in the market similar to the one we saw in the 2010s is limited.