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Is SPDR Russell 1000 Yield Focus ETF (ONEY) a Strong ETF Right Now?
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Launched on 12/02/2015, the SPDR Russell 1000 Yield Focus ETF (ONEY - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by State Street Global Advisors, ONEY has amassed assets over $732.39 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, ONEY seeks to match the performance of the Russell 1000 Yield Focused Factor Index.
The Russell 1000 Yield 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 high yield 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 ONEY, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.49%.
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.
For ONEY, it has heaviest allocation in the Financials sector --about 20.40% of the portfolio --while Consumer Staples and Real Estate round out the top three.
Taking into account individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.93% of the fund's total assets, followed by Progressive Corporation (PGR - Free Report) and Best Buy Co. Inc. (BBY - Free Report) .
The top 10 holdings account for about 12.1% of total assets under management.
Performance and Risk
Year-to-date, the SPDR Russell 1000 Yield Focus ETF return is roughly 37.96% so far, and is up about 36.69% over the last 12 months (as of 12/28/2021). ONEY has traded between $73.82 and $99.54 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 27.80% for the trailing three-year period. With about 278 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Yield Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $59.79 billion in assets, Vanguard Value ETF has $91.89 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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 Yield Focus ETF (ONEY) a Strong ETF Right Now?
Launched on 12/02/2015, the SPDR Russell 1000 Yield Focus ETF (ONEY - Free Report) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by State Street Global Advisors, ONEY has amassed assets over $732.39 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. Before fees and expenses, ONEY seeks to match the performance of the Russell 1000 Yield Focused Factor Index.
The Russell 1000 Yield 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 high yield 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 ONEY, making it on par with most peer products in the space.
The fund has a 12-month trailing dividend yield of 2.49%.
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.
For ONEY, it has heaviest allocation in the Financials sector --about 20.40% of the portfolio --while Consumer Staples and Real Estate round out the top three.
Taking into account individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.93% of the fund's total assets, followed by Progressive Corporation (PGR - Free Report) and Best Buy Co. Inc. (BBY - Free Report) .
The top 10 holdings account for about 12.1% of total assets under management.
Performance and Risk
Year-to-date, the SPDR Russell 1000 Yield Focus ETF return is roughly 37.96% so far, and is up about 36.69% over the last 12 months (as of 12/28/2021). ONEY has traded between $73.82 and $99.54 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 27.80% for the trailing three-year period. With about 278 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Yield Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.
IShares Russell 1000 Value ETF (IWD - Free Report) tracks Russell 1000 Value Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. IShares Russell 1000 Value ETF has $59.79 billion in assets, Vanguard Value ETF has $91.89 billion. IWD has an expense ratio of 0.19% and VTV charges 0.04%.
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 Value.
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.