The SPDR Russell 1000 Low Volatility Focus ETF (ONEV Quick QuoteONEV - Free Report) was launched on 12/02/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by State Street Global Advisors. It has amassed assets over $594 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 find themselves in the large cap category typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.20%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.79%.

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.

This ETF has heaviest allocation to the Industrials sector--about 21% of the portfolio. Consumer Discretionary and Healthcare round out the top three.

Looking at individual holdings, Cencora Inc (COR Quick QuoteCOR - Free Report) accounts for about 1.32% of total assets, followed by Centene Corp (CNC Quick QuoteCNC - Free Report) and Mckesson Corp (MCK Quick QuoteMCK - Free Report) .

The top 10 holdings account for about 10.45% of total assets under management.

Performance and Risk

ONEV seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index before fees and expenses. 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.

The ETF has added roughly 13.39% so far this year and it's up approximately 13.03% in the last one year (as of 12/27/2023). In the past 52-week period, it has traded between $99.61 and $114.89.

The ETF has a beta of 0.97 and standard deviation of 15.78% for the trailing three-year period. With about 471 holdings, it effectively diversifies company-specific risk.

Alternatives

SPDR Russell 1000 Low Volatility 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, ONEV is a good 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 Quick QuoteIVV - Free Report) and the SPDR S&P 500 ETF (SPY Quick QuoteSPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $387.93 billion in assets, SPDR S&P 500 ETF has $495.12 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

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.