Invesco RAFI Strategic US ETF

Invesco RAFI Strategic US ETF (IUS) tracks the Invesco Strategic US Index. The index holds about 540 US companies and weights them by the size of their businesses, using sales, cash flow, dividends and buybacks, and book value, rather than by stock market value. It also drops the eligible companies with the weakest quality scores. At 0.19% a year, it costs less than the fundamental-index funds FNDX (0.25%) and PRF (0.33%), but more than S&P 500 funds.

• Over the year to Oct 27, 2026, IUS returned +25.6%, 1st of 9 among similar funds.
• Its 5-year annualized return was +14.7%.
• In the 2020 COVID crash it fell 34.5% and regained its old high 5.2 months after the low.
• Its worst full calendar year was 2022 (-8.3%); its best was 2021 (+32.2%).
• The deepest fall in its price history was 34.6% (Feb 12, 2020 to Mar 23, 2020), recovered by Sep 2, 2020.

As of Aug 31, 2026, the fund held 537 securities; the ten largest made up 26.15% of assets.

By sector

• Over the three months to Aug 31, 2026, investors added a net $69.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.13%, +3.55%, +2.66%.

IUS seeks to track the Invesco Strategic US Index. The index is run by Invesco Indexing LLC, which is affiliated with the fund's adviser, Invesco Capital Management. It starts with US stocks that have traded for at least a year. Each company gets a business-size score. The score averages four measures over the prior five years: sales, operating cash flow, total return of capital (dividends plus share buybacks) and book value (roughly, assets minus debts). For REITs and other real estate stocks, funds from operations and total assets take the place of cash flow and book value.

The companies that make up the top 90% of total business-size score are eligible. Each one then gets a quality score based on efficiency (sales divided by assets) and on how that ratio has grown over five years. The 80% with the highest quality scores make the index. Stocks are weighted by float-adjusted business-size score, which counts only shares available to trade. So a company with large sales and cash flow gets a big weight even if its share price is modest. As of October 31, 2025, the index had 546 stocks, with market values from about $902.7 million to $4.9 trillion.

The fund uses full replication, meaning it buys every index stock at its index weight. Its August 31, 2026 holdings report showed no derivatives. The prospectus lists portfolio turnover of 11%. Like any index fund, it keeps a lagging stock until the index removes it.

• IUS charges 0.19% a year, versus an average of 0.15% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $19 in the first year and $242 over 10 years (assuming a 5% annual return).

It spreads money across about 540 large US companies at a modest cost, so it can serve as the main stock holding instead of a niche bet.

IUS gives broad US stock exposure, tilted toward big, cash-generating businesses. It launched in September 2018, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 34.6% between February 12 and March 23, then recovered by September 2, 2020. In 2022 it fell 18.7% from peak to low and took nine months to recover. Its worst calendar year was 2022, at -8.4%. Anyone forced to sell shares in a stretch like that would have locked in losses. It yielded 1.22% over the 12 months to October 27, 2026, paid quarterly, so it offers modest income. It costs 0.19% a year. In the SEC's standard example, that comes to $242 over 10 years on $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.