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Is SPDR Russell 1000 Low Volatility Focus ETF (ONEV) a Hot ETF Right Now?
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A smart beta exchange traded fund, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV - Free Report) debuted on 12/02/2015, and offers broad exposure to the Large Cap ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. ONEV has been able to amass assets over $450.81 M, making it one of the average sized ETFs in the Large Cap ETFs. ONEV, before fees and expenses, seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index.
The Russell 1000 Low Volatility Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors high value, high quality, and low size characteristics, with a focus factor comprising low volatility characteristics.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.20% for ONEV, making it one of the cheaper products in the space.
ONEV's 12-month trailing dividend yield is 1.88%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 18.50% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Industrials and Financials round out the top three.
Looking at individual holdings, Baxter International Inc. (BAX - Free Report) accounts for about 1.11% of total assets, followed by Sysco Corporation (SYY - Free Report) and Equity Residential (EQR - Free Report) .
ONEV's top 10 holdings account for about 9.1% of its total assets under management.
Performance and Risk
So far this year, the ETF has lost about -0.22%, and was up about 11.94% in the last one year (as of 05/24/2018). ONEV has traded between $69.37 and $76.42 in the past 52-week period.
The ETF has a beta of 0.98 and standard deviation of 11.29% for the trailing three-year period. With about 420 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Large Cap ETFs 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 $147.45 B in assets, SPDR S&P 500 ETF has $260.79 B. IVV has an expense ratio of 0.04% 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 Large Cap ETFs.
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 Low Volatility Focus ETF (ONEV) a Hot ETF Right Now?
A smart beta exchange traded fund, the SPDR Russell 1000 Low Volatility Focus ETF (ONEV - Free Report) debuted on 12/02/2015, and offers broad exposure to the Large Cap ETFs category of the U.S. equity market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
The fund is managed by State Street Global Advisors. ONEV has been able to amass assets over $450.81 M, making it one of the average sized ETFs in the Large Cap ETFs. ONEV, before fees and expenses, seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index.
The Russell 1000 Low Volatility Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors high value, high quality, and low size characteristics, with a focus factor comprising low volatility characteristics.
Cost & Other Expenses
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.20% for ONEV, making it one of the cheaper products in the space.
ONEV's 12-month trailing dividend yield is 1.88%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 18.50% of the portfolio, the fund has heaviest allocation to the Consumer Discretionary sector; Industrials and Financials round out the top three.
Looking at individual holdings, Baxter International Inc. (BAX - Free Report) accounts for about 1.11% of total assets, followed by Sysco Corporation (SYY - Free Report) and Equity Residential (EQR - Free Report) .
ONEV's top 10 holdings account for about 9.1% of its total assets under management.
Performance and Risk
So far this year, the ETF has lost about -0.22%, and was up about 11.94% in the last one year (as of 05/24/2018). ONEV has traded between $69.37 and $76.42 in the past 52-week period.
The ETF has a beta of 0.98 and standard deviation of 11.29% for the trailing three-year period. With about 420 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Large Cap ETFs 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 $147.45 B in assets, SPDR S&P 500 ETF has $260.79 B. IVV has an expense ratio of 0.04% 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 Large Cap ETFs.
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.