ETF Evaluator: Invesco RAFI Developed Mkts ex-US S-METF () Follow This ETF

Invesco RAFI Developed Mkts ex-US S-METF Overview

Invesco RAFI Developed Mkts ex-US S-METF (PDN) is a passively managed International Equity Foreign Small/Mid Value exchange-traded fund (ETF). Invesco launched the ETF in 2007.

The investment seeks to track the investment results of the RAFI Fundamental Select Developed ex US 1500 Index. The fund generally will invest at least 90% of its total assets in the securities that comprise the index. The index provider compiles, maintains and calculates the new underlying index, which is comprised of approximately 1,500 common stocks and is designed to track the performance of small and mid-sized developed market companies, excluding U.S. companies, based on the following four fundamental measures of company size: book value plus intangibles, adjusted cash flow, adjusted sales, dividend plus buybacks.

About Invesco RAFI Developed Mkts ex-US S-METF (PDN)

There are 4 members of the management team with an average tenure of 9.20 years: Peter Hubbard (2007), Michael Jeanette (2015), Pratik Doshi (2020) and Faiz Syed (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI World Ex USA IMI NR USD index with a weighting of 100% and RAFI Fund Select Dev ex US 1500 TR USD index with a weighting of 100%. Invesco RAFI Developed Mkts ex-US S-METF has 1589 securities in its portfolio. The top 10 holdings constitute 2.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Invesco RAFI Developed Mkts ex-US S-METF is part of the Equity global asset class and is within the International Equity ETF group. Invesco RAFI Developed Mkts ex-US S-METF has 96.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 3.0% There is 96.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco RAFI Developed Mkts ex-US S-METF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $352 million in total assets, which is below the $2 billion average for the Foreign Small/Mid Value category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PDN Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco RAFI Developed Mkts ex-US S-METF expense ratio is average compared to funds in the Foreign Small/Mid Value category. Invesco RAFI Developed Mkts ex-US S-METF has an expense ratio of 0.47%, which is 14% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco RAFI Developed Mkts ex-US S-METF has a portfolio turnover rate of 33%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 49% for the Foreign Small/Mid Value category.

Recently, in the month of July 2026, Invesco RAFI Developed Mkts ex-US S-METF returned 1.0%, which earned it a grade of D, as the Foreign Small/Mid Value category had an average return of 2.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco RAFI Developed Mkts ex-US S-METF has a trailing yield of 3.25%, which is above the 3.23% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco RAFI Developed Mkts ex-US S-METF Grades

Year to date, the ETF has returned 9.7%, 2.1 percentage points worse than the category, which translates into a grade of D. The fund has returned 21.7% over the past year (grade of D), 15.8% over the past three years (grade of F) and 6.9% per year over the past five years (grade of F) and 8.1% per year over the past 10 years (grade of D).

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