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Should Strive 500 ETF (STXF) Be on Your Investing Radar?
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Launched on September 15, 2022, the Strive 500 ETF (STXF - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Strive Etfs. It has amassed assets over $1.17 billion, making it one of the larger 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. They tend to be stable companies with predictable cash flows and are usually less volatile 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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.98%.
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 37.2% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.32% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 37.07% of total assets under management.
Performance and Risk
STXF seeks to match the performance of the BLOOMBERG 500 INDEX before fees and expenses. The Bloomberg 500 Index measures the performance of the large-capitalization sector in the U.S. equity market as determined by Bloomberg.
The ETF has added about 4.19% so far this year. In the past 52-week period, it has traded between $46.82 and $50.26.
The ETF has a beta of 1.01. With about 511 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive 500 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, STXF 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) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $891.25 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,020.38 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
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.
View the Zacks #1 Rank List
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Should Strive 500 ETF (STXF) Be on Your Investing Radar?
Launched on September 15, 2022, the Strive 500 ETF (STXF - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by Strive Etfs. It has amassed assets over $1.17 billion, making it one of the larger 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. They tend to be stable companies with predictable cash flows and are usually less volatile 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 0.05%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 0.98%.
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 37.2% of the portfolio. Financials and Healthcare round out the top three.
Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.32% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).
The top 10 holdings account for about 37.07% of total assets under management.
Performance and Risk
STXF seeks to match the performance of the BLOOMBERG 500 INDEX before fees and expenses. The Bloomberg 500 Index measures the performance of the large-capitalization sector in the U.S. equity market as determined by Bloomberg.
The ETF has added about 4.19% so far this year. In the past 52-week period, it has traded between $46.82 and $50.26.
The ETF has a beta of 1.01. With about 511 holdings, it effectively diversifies company-specific risk.
Alternatives
Strive 500 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, STXF 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) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $891.25 billion in assets, Vanguard 500 Index Fund ETF Shares has $1,020.38 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.
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.