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Should SPDR Russell 1000 Momentum Focus ETF (ONEO) Be on Your Investing Radar?
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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR Russell 1000 Momentum Focus ETF (ONEO - Free Report) is a passively managed exchange traded fund launched on 12/02/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $336.51 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.18%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 19.50% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.11% of total assets, followed by Dell Technologies Inc Class C (DELL - Free Report) and Quanta Services Inc. (PWR - Free Report) .
The top 10 holdings account for about 6.08% of total assets under management.
Performance and Risk
ONEO 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.
The ETF has added roughly 0.85% so far this year and is up about 28.90% in the last one year (as of 01/05/2022). In the past 52-week period, it has traded between $85.15 and $107.45.
The ETF has a beta of 1.12 and standard deviation of 23.72% for the trailing three-year period. With about 906 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Momentum Focus ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ONEO is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $339.13 billion in assets, SPDR S&P 500 ETF has $457.93 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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 Russell 1000 Momentum Focus ETF (ONEO) Be on Your Investing Radar?
Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the SPDR Russell 1000 Momentum Focus ETF (ONEO - Free Report) is a passively managed exchange traded fund launched on 12/02/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $336.51 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to 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.
Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.18%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 19.50% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Hp Inc. (HPQ - Free Report) accounts for about 1.11% of total assets, followed by Dell Technologies Inc Class C (DELL - Free Report) and Quanta Services Inc. (PWR - Free Report) .
The top 10 holdings account for about 6.08% of total assets under management.
Performance and Risk
ONEO 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.
The ETF has added roughly 0.85% so far this year and is up about 28.90% in the last one year (as of 01/05/2022). In the past 52-week period, it has traded between $85.15 and $107.45.
The ETF has a beta of 1.12 and standard deviation of 23.72% for the trailing three-year period. With about 906 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Momentum Focus ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ONEO is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $339.13 billion in assets, SPDR S&P 500 ETF has $457.93 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also 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.