What Is PRF? Invesco RAFI US 1000 ETF

In a cap-weighted index a company's weight is its share price multiplied by shares outstanding. If the market pays more for a stock, its weight rises automatically. RAFI severs that link, sizing positions on averaged accounting measures instead: sales, cash flow, dividends paid and book value. Share price enters only when the index rebalances back to those figures.

The mechanical result is a contrarian rebalance. A company whose share price doubles while its revenue and book value stay flat gets trimmed back at the next rebalance, and one whose price has fallen without a matching decline in its accounts is topped up. This is where the small value tilt in a fund holding megacap technology comes from.

Intel at 2.8% is the clearest illustration. By market value it is a fraction of Microsoft, but its revenue, book value and asset base remain very large, and fundamental weighting sizes it accordingly. The same logic puts Exxon Mobil at 1.7%, above Meta.

A conventional value index excludes expensive companies. PRF does not exclude anything: it holds roughly a thousand US companies and simply weights them differently. Apple, Alphabet, Microsoft, Amazon and Meta are all present, at weights well below their cap-weighted levels but far from absent, and technology is still the largest sector at 22%.

The value character therefore comes from the weighting, not from the holdings. Financials at 16% and healthcare at 13% carry more weight than they would in a cap-weighted index, and the sector spread is flatter overall. The ten largest positions total 22.7%, meaningfully less concentrated than the top of the US market has been in recent years.

The trade-off is straightforward and should be expected. When a handful of very large companies drive the market, a fund that deliberately underweights them relative to price will lag. When leadership broadens or reverses, the same construction works in the other direction.

At 0.34%, PRF costs many times a plain large-value index fund and around four times a low-cost broad-market ETF. The rebalancing that defines the strategy also generates turnover, which matters in a taxable account, though the ETF structure absorbs much of that through in-kind redemption.

Two decades of history is genuinely useful here: the fund launched in 2005 and has operated through the financial crisis, a long growth-led bull market and the 2022 drawdown. That is more cycle evidence than most factor products can offer, which is worth something when assessing whether the approach behaves as described.

It suits an investor who wants a value tilt without abandoning the largest companies entirely. It is a poor fit for anyone seeking a clean growth-free portfolio, and unnecessary for anyone whose goal is simply cheap broad US exposure, where the fee gap is large and compounds. The comparison worth making is not against the market but against a plain large-value index fund, since that is the alternative way to buy the same tilt for a great deal less.

Approximate weights as of August 2026. Each ticker links to its individual stock guide in Walnut.

There are three common ways to get PRF exposure. Buy shares (or fractional shares) of PRF directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so PRF sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. PRF trades like a stock during market hours, so you buy it the same way you would any listed share.

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Whether PRF is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks the RAFI US 1000 Index, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is PRF a buy?

PRF gives you the RAFI US 1000 Index exposure in one ticker at a 0.34% expense ratio. Most investors use it as a core holding and layer more concentrated thematic portfolios on top.

Whether PRF is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is PRF a buy?

PRF yields 1.37% as of August 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see PRF dividend: yield and schedule.

New to funds like PRF? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.