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Is SPDR Russell 1000 Momentum Focus ETF (ONEO) a Strong ETF Right Now?
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Launched on 12/02/2015, the SPDR Russell 1000 Momentum Focus ETF (ONEO - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $299.78 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ONEO is managed by State Street Global Advisors. This particular fund seeks to match the performance of the Russell 1000 Momentum Focused Factor Index before fees and expenses.
The Russell 1000 Momentum Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors with a focus factor comprising high momentum characteristics.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.20% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.51%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 16.10% of the portfolio. Industrials and Financials round out the top three.
Taking into account individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.36% of the fund's total assets, followed by Mckesson Corporation (MCK - Free Report) and Nucor Corporation (NUE - Free Report) .
The top 10 holdings account for about 6.78% of total assets under management.
Performance and Risk
So far this year, ONEO has lost about -9.64%, and is down about -9.81% in the last one year (as of 11/21/2022). During this past 52-week period, the fund has traded between $82.11 and $106.83.
ONEO has a beta of 1.07 and standard deviation of 26.30% for the trailing three-year period. With about 894 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Momentum Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV - Free Report) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY - Free Report) tracks S&P 500 Index. IShares Core S&P 500 ETF has $302.21 billion in assets, SPDR S&P 500 ETF has $378.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is SPDR Russell 1000 Momentum Focus ETF (ONEO) a Strong ETF Right Now?
Launched on 12/02/2015, the SPDR Russell 1000 Momentum Focus ETF (ONEO - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Blend category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $299.78 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ONEO is managed by State Street Global Advisors. This particular fund seeks to match the performance of the Russell 1000 Momentum Focused Factor Index before fees and expenses.
The Russell 1000 Momentum Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors with a focus factor comprising high momentum characteristics.
Cost & Other Expenses
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are the same.
Operating expenses on an annual basis are 0.20% for this ETF, which makes it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.51%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector - about 16.10% of the portfolio. Industrials and Financials round out the top three.
Taking into account individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.36% of the fund's total assets, followed by Mckesson Corporation (MCK - Free Report) and Nucor Corporation (NUE - Free Report) .
The top 10 holdings account for about 6.78% of total assets under management.
Performance and Risk
So far this year, ONEO has lost about -9.64%, and is down about -9.81% in the last one year (as of 11/21/2022). During this past 52-week period, the fund has traded between $82.11 and $106.83.
ONEO has a beta of 1.07 and standard deviation of 26.30% for the trailing three-year period. With about 894 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Momentum Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Core S&P 500 ETF (IVV - Free Report) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY - Free Report) tracks S&P 500 Index. IShares Core S&P 500 ETF has $302.21 billion in assets, SPDR S&P 500 ETF has $378.74 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.