Should Invesco S&P SmallCap 600 Revenue ETF (RWJ) Be on Your Investing Radar?

The Invesco S&P SmallCap 600 Revenue ETF (RWJ) was launched on February 22, 2008, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Blend segment of the US equity market.

Zacks Investment Research • Nov 26, 2025

RWJ: Simplicity Keeps Outperforming In The Small Cap Area

Invesco S&P SmallCap 600 Revenue ETF (RWJ) uses a revenue-weighted strategy, offering strong diversification and a focus on consumer discretionary stocks. RWJ has consistently outperformed its parent index (IJR) and several factor-based small-cap ETFs, both long-term and over the past year, despite higher volatility. The ETF demonstrates solid value characteristics, lower valuation ratios, and impressive dividend growth, despite a low yield.

Seeking Alpha • Nov 12, 2025

RWJ: Value-Heavy But With Low Quality, Worth Avoiding

The S&P SmallCap 600 Revenue-Weighted Index is at the crux of RWJ's strategy. RWJ's performance this year has been dismal, as the low quality of its portfolio has likely been the main detractor, and the value factor has failed to bolster it. Focused on the consumer discretionary sector, RWJ remains value-heavy but quality-light, a questionable proposition.

Seeking Alpha • Apr 16, 2025

RWJ: A Revenue-Weighted ETF Offering Low Valuations With A Strong Track Record

The Invesco S&P SmallCap 600 Revenue ETF (RWJ) outperforms peers by weighting stocks based on revenue, while offering lower valuations. RWJ's sector allocation is distinct, with overweight positions in consumer discretionary and industrials, contributing to its strong capital gains and elevated growth profile. Despite high volatility, RWJ's Sharpe ratio is the highest among peers, indicating strong adjusted returns.

Seeking Alpha • Dec 28, 2024

RWJ: Simple And Effective Small-Cap Strategy

Invesco S&P SmallCap 600 Revenue ETF holds S&P 600 stocks weighted based on 12-month revenues. The RWJ ETF is well-diversified, with a focus on consumer discretionary, and combines good valuation and growth metrics. RWJ has outperformed its parent index, S&P 600, since 2008, and numerous competitors over the last 5 years.

Seeking Alpha • Dec 24, 2024

RWJ: Revenue-Weighted Small Caps Offer A Strong IRR Potential Of Over 12%

Invesco S&P SmallCap 600 Revenue ETF invests in the S&P SmallCap 600 Revenue-Weighted index, with $1.57 billion in assets and 598 holdings. RWJ portfolio is well-diversified, with top sectors in consumer cyclical, industrial, financial services, and technology. Valuation indicates potential for over 12% IRR, but high beta and economic risks may lead to relative underperformance compared to mega-cap stocks in an ill-timed scenario.

Seeking Alpha • Aug 19, 2024

RWJ: Beating Other Small-Cap Value ETFs For 4 Years

Invesco S&P SmallCap 600 Revenue ETF weights S&P 600 stocks based on 12-month revenues. The RWJ ETF portfolio is heavy in consumer discretionary, but it is well-diversified across holdings. It is cheaper than the S&P 600 regarding valuation ratios, but growth and quality metrics are average.

Seeking Alpha • May 4, 2024

RWJ: Undervalued SMID Mix With A Quality Issue, Caution Is Warranted

RWJ has a passive strategy that puts emphasis on small-caps with meaningful revenues. Investors have a few reasons to consider RWJ, major among them being its appealing valuation, but all of them are insufficient when the quality question is raised. The problem is its too small allocation to stocks with a B- Quant Profitability grade, weak ROA, and large exposure to overleveraged companies.

Seeking Alpha • May 4, 2024

RWJ: An Answer To Small-Cap Zombie Averages

Invesco S&P SmallCap 600 Revenue ETF focuses on small-cap strategies that weed out zombie companies and have revenue to support higher interest expenses. RWJ provides diversified exposure to minimize single stock risk, with top positions including World Kinect, United Natural Foods, Lincoln National, Kohl's, and Group 1 Automotive. The Fund has a diversified sector allocation, with the heaviest allocation to the Consumer Discretionary sector, and has outperformed similar ETFs due to its revenue focus.

Seeking Alpha • Jan 29, 2024

RWJ: Playing Value In Small Caps Means Sacrificing Quality

RWJ is a value-heavy smart-beta play offering exposure to a recalibrated version of the S&P 600. While having much stronger value characteristics than IJR, RWJ lags it on the quality and growth fronts. Another surprising issue is volatility, which marred an otherwise strong performance delivered since its reorganization.

Seeking Alpha • Nov 4, 2023