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Should SPDR S&P 600 Small Cap Value ETF (SLYV) Be on Your Investing Radar?
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Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the SPDR S&P 600 Small Cap Value ETF (SLYV - Free Report) is a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.90 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 19.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Helmerich & Payne Inc. (HP - Free Report) accounts for about 1.02% of total assets, followed by South Jersey Industries Inc. and Sanmina Corporation (SANM - Free Report) .
The top 10 holdings account for about 7.35% of total assets under management.
Performance and Risk
SLYV seeks to match the performance of the S&P SmallCap 600 Value Index before fees and expenses. The S&P SmallCap 600 Value Index measures the performance of the small-capitalization value sector in the U.S. equity market. The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities listed on the NYSE, NASDAQ Global Select Market, NASDAQ Select Market and NASDAQ Capital Market with market capitalizations between $250 million and $1.2 billion.
The ETF has added roughly 0.35% so far this year and is down about -7.24% in the last one year (as of 03/16/2023). In the past 52-week period, it has traded between $67.14 and $86.64.
The ETF has a beta of 1.18 and standard deviation of 30.84% for the trailing three-year period, making it a medium risk choice in the space. With about 467 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 600 Small Cap 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, SLYV is an outstanding option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 Value ETF (IWN - Free Report) and the Vanguard Small-Cap Value ETF (VBR - Free Report) track a similar index. While iShares Russell 2000 Value ETF has $11.04 billion in assets, Vanguard Small-Cap Value ETF has $23.43 billion. IWN has an expense ratio of 0.23% and VBR charges 0.07%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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 S&P 600 Small Cap Value ETF (SLYV) Be on Your Investing Radar?
Designed to provide broad exposure to the Small Cap Value segment of the US equity market, the SPDR S&P 600 Small Cap Value ETF (SLYV - Free Report) is a passively managed exchange traded fund launched on 09/25/2000.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $3.90 billion, making it one of the larger ETFs attempting to match the Small Cap Value segment of the US equity market.
Why Small Cap Value
Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.
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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.15%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.47%.
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 19.70% of the portfolio. Industrials and Consumer Discretionary round out the top three.
Looking at individual holdings, Helmerich & Payne Inc. (HP - Free Report) accounts for about 1.02% of total assets, followed by South Jersey Industries Inc. and Sanmina Corporation (SANM - Free Report) .
The top 10 holdings account for about 7.35% of total assets under management.
Performance and Risk
SLYV seeks to match the performance of the S&P SmallCap 600 Value Index before fees and expenses. The S&P SmallCap 600 Value Index measures the performance of the small-capitalization value sector in the U.S. equity market. The selection universe for the S&P SmallCap 600 Index includes all U.S. common equities listed on the NYSE, NASDAQ Global Select Market, NASDAQ Select Market and NASDAQ Capital Market with market capitalizations between $250 million and $1.2 billion.
The ETF has added roughly 0.35% so far this year and is down about -7.24% in the last one year (as of 03/16/2023). In the past 52-week period, it has traded between $67.14 and $86.64.
The ETF has a beta of 1.18 and standard deviation of 30.84% for the trailing three-year period, making it a medium risk choice in the space. With about 467 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR S&P 600 Small Cap 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, SLYV is an outstanding option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.
The iShares Russell 2000 Value ETF (IWN - Free Report) and the Vanguard Small-Cap Value ETF (VBR - Free Report) track a similar index. While iShares Russell 2000 Value ETF has $11.04 billion in assets, Vanguard Small-Cap Value ETF has $23.43 billion. IWN has an expense ratio of 0.23% and VBR charges 0.07%.
Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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.