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Should Invesco S&P 500 Enhanced Value ETF (SPVU) Be on Your Investing Radar?
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The Invesco S&P 500 Enhanced Value ETF (SPVU - Free Report) was launched on 10/09/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $271.28 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.13%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.16%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 39.70% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, At&t Inc (T - Free Report) accounts for about 5.21% of total assets, followed by Walmart Inc (WMT - Free Report) and Berkshire Hathaway Inc (BRK/B).
The top 10 holdings account for about 40.27% of total assets under management.
Performance and Risk
SPVU seeks to match the performance of the S&P 500 Enhanced Value Index before fees and expenses. The S&P 500 Enhanced Value Index tracks the performance of stocks in the S&P 500 Index that have the highest value score.
The ETF has added roughly 25.18% so far this year and was up about 50.71% in the last one year (as of 08/05/2021). In the past 52-week period, it has traded between $26.41 and $44.28.
The ETF has a beta of 1.30 and standard deviation of 29.69% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Enhanced Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPVU is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD - Free Report) and the Vanguard Value ETF (VTV - Free Report) track a similar index. While iShares Russell 1000 Value ETF has $53.84 billion in assets, Vanguard Value ETF has $82.41 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Invesco S&P 500 Enhanced Value ETF (SPVU) Be on Your Investing Radar?
The Invesco S&P 500 Enhanced Value ETF (SPVU - Free Report) was launched on 10/09/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Value segment of the US equity market.
The fund is sponsored by Invesco. It has amassed assets over $271.28 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.
Why Large Cap Value
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.
Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.
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 0.13%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 2.16%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Financials sector--about 39.70% of the portfolio. Healthcare and Consumer Staples round out the top three.
Looking at individual holdings, At&t Inc (T - Free Report) accounts for about 5.21% of total assets, followed by Walmart Inc (WMT - Free Report) and Berkshire Hathaway Inc (BRK/B).
The top 10 holdings account for about 40.27% of total assets under management.
Performance and Risk
SPVU seeks to match the performance of the S&P 500 Enhanced Value Index before fees and expenses. The S&P 500 Enhanced Value Index tracks the performance of stocks in the S&P 500 Index that have the highest value score.
The ETF has added roughly 25.18% so far this year and was up about 50.71% in the last one year (as of 08/05/2021). In the past 52-week period, it has traded between $26.41 and $44.28.
The ETF has a beta of 1.30 and standard deviation of 29.69% for the trailing three-year period, making it a medium risk choice in the space. With about 101 holdings, it effectively diversifies company-specific risk.
Alternatives
Invesco S&P 500 Enhanced Value ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPVU is an excellent option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 1000 Value ETF (IWD - Free Report) and the Vanguard Value ETF (VTV - Free Report) track a similar index. While iShares Russell 1000 Value ETF has $53.84 billion in assets, Vanguard Value ETF has $82.41 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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.