The SPDR Russell 1000 Low Volatility Focus ETF (ONEV) 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 $527.67 million, 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 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 are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.90%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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 18.10% of the portfolio. Information Technology and Financials round out the top three.
Looking at individual holdings, Hp Inc. (HPQ) accounts for about 1.12% of total assets, followed by Willis Towers Watson Public Limited Company (WTW) and Archer-Daniels-Midland Company (ADM).
The top 10 holdings account for about 7.68% 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 lost about -17.32% so far this year and is down about -10.73% in the last one year (as of 09/28/2022). In the past 52-week period, it has traded between $92.57 and $114.25.
The ETF has a beta of 0.95 and standard deviation of 24.36% for the trailing three-year period. With about 475 holdings, it effectively diversifies company-specific risk.
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 reasonable 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 SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $272.40 billion in assets, SPDR S&P 500 ETF has $327.25 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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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SPDR Russell 1000 Low Volatility Focus ETF (ONEV): ETF Research Reports
HP Inc. (HPQ) : Free Stock Analysis Report
Archer Daniels Midland Company (ADM) : Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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