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Should SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV) Be on Your Investing Radar?
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If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV - Free Report) , a passively managed exchange traded fund launched on 02/20/2013.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $201.81 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.12%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 32.20% of the portfolio. Real Estate and Industrials round out the top three.
Looking at individual holdings, Apollo Commercial Real Estate Finance Inc. (ARI - Free Report) accounts for about 1.07% of total assets, followed by White Mountains Insurance Group Ltd (WTM - Free Report) and Capstead Mortgage Corporation .
The top 10 holdings account for about 7.72% of total assets under management.
Performance and Risk
SMLV seeks to match the performance of the SSGA US Small Cap Low Volatility Index before fees and expenses. The SSGA US Small Cap Low Volatility Index is designed to track the performance of U.S. small capitalization companies that exhibit low volatility.
The ETF has added roughly 0.88% so far this year and was up about 3.37% in the last one year (as of 05/17/2018). In the past 52-week period, it has traded between $85.67 and $99.47.
With about 414 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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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Should SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV) Be on Your Investing Radar?
If you're interested in broad exposure to the Small Cap Blend segment of the US equity market, look no further than the SPDR SSGA US Small Cap Low Volatility Index ETF (SMLV - Free Report) , a passively managed exchange traded fund launched on 02/20/2013.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $201.81 M, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.
Why Small Cap Blend
With more potential comes more risk, and small cap companies, with market capitalization below $2 billion, epitomizes this way of thinking.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.12%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 2.56%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 32.20% of the portfolio. Real Estate and Industrials round out the top three.
Looking at individual holdings, Apollo Commercial Real Estate Finance Inc. (ARI - Free Report) accounts for about 1.07% of total assets, followed by White Mountains Insurance Group Ltd (WTM - Free Report) and Capstead Mortgage Corporation .
The top 10 holdings account for about 7.72% of total assets under management.
Performance and Risk
SMLV seeks to match the performance of the SSGA US Small Cap Low Volatility Index before fees and expenses. The SSGA US Small Cap Low Volatility Index is designed to track the performance of U.S. small capitalization companies that exhibit low volatility.
The ETF has added roughly 0.88% so far this year and was up about 3.37% in the last one year (as of 05/17/2018). In the past 52-week period, it has traded between $85.67 and $99.47.
With about 414 holdings, it effectively diversifies company-specific risk.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.