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Is SPDR Russell 1000 Yield Focus ETF (ONEY) a Strong ETF Right Now?
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A smart beta exchange traded fund, the SPDR Russell 1000 Yield Focus ETF (ONEY - Free Report) debuted on 12/02/2015, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $821.46 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. ONEY is managed by State Street Global Advisors. ONEY, before fees and expenses, 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 one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 3.08%.
Sector Exposure and Top Holdings
ETFs offer 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 in the Consumer Staples sector - about 13.50% of the portfolio. Utilities and Consumer Discretionary round out the top three.
Taking into account individual holdings, Bristol Myers Squibb Co (BMY - Free Report) accounts for about 2.65% of the fund's total assets, followed by Gilead Sciences Inc (GILD - Free Report) and Altria Group Inc (MO - Free Report) .
ONEY's top 10 holdings account for about 13.79% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR Russell 1000 Yield Focus ETF has added roughly 3.21% so far, and was up about 14.36% over the last 12 months (as of 02/25/2025). ONEY has traded between $100.70 and $117.55 in this past 52-week period.
The ETF has a beta of 1.11 and standard deviation of 16.46% for the trailing three-year period. With about 292 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.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $69.43 billion in assets, Vanguard Value ETF has $135.37 billion. SCHD has an expense ratio of 0.06% 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?
A smart beta exchange traded fund, the SPDR Russell 1000 Yield Focus ETF (ONEY - Free Report) debuted on 12/02/2015, and offers broad exposure to the Style Box - Large Cap Value category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $821.46 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Value. ONEY is managed by State Street Global Advisors. ONEY, before fees and expenses, 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 one of the cheaper products in the space.
The fund has a 12-month trailing dividend yield of 3.08%.
Sector Exposure and Top Holdings
ETFs offer 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 in the Consumer Staples sector - about 13.50% of the portfolio. Utilities and Consumer Discretionary round out the top three.
Taking into account individual holdings, Bristol Myers Squibb Co (BMY - Free Report) accounts for about 2.65% of the fund's total assets, followed by Gilead Sciences Inc (GILD - Free Report) and Altria Group Inc (MO - Free Report) .
ONEY's top 10 holdings account for about 13.79% of its total assets under management.
Performance and Risk
Year-to-date, the SPDR Russell 1000 Yield Focus ETF has added roughly 3.21% so far, and was up about 14.36% over the last 12 months (as of 02/25/2025). ONEY has traded between $100.70 and $117.55 in this past 52-week period.
The ETF has a beta of 1.11 and standard deviation of 16.46% for the trailing three-year period. With about 292 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.
Schwab U.S. Dividend Equity ETF (SCHD - Free Report) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value ETF (VTV - Free Report) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $69.43 billion in assets, Vanguard Value ETF has $135.37 billion. SCHD has an expense ratio of 0.06% 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.