The SPDR Russell 1000 Low Volatility Focus ETF (ONEV – Free Report) was launched on 12/02/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box – Large Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
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.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $578.42 million, this makes it one of the average sized ETFs in the Style Box – Large Cap Blend. ONEV is managed by State Street Global Advisors. 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.
Cost & Other Expenses
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%, making it on par with most peer products in the space.
ONEV’s 12-month trailing dividend yield is 1.88%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it’s still important for investors to research a fund’s holdings.
Representing 19% of the portfolio, the fund has heaviest allocation to the Industrials sector; Healthcare and Financials round out the top three.
Looking at individual holdings, Cognizant Tech Solutions A (CTSH – Free Report) accounts for about 1.43% of total assets, followed by Bristol Myers Squibb Co (BMY – Free Report) and Cardinal Health Inc (CAH – Free Report) .
The top 10 holdings account for about 9.45% of total assets under management.
Performance and Risk
The ETF has added roughly 0% and was up about 11.71% so far this year and in the past one year (as of 01/02/2025), respectively. ONEV has traded between $112.48 and $135.42 during this last 52-week period.
The ETF has a beta of 0.98 and standard deviation of 15.25% for the trailing three-year period. With about 433 holdings, it effectively diversifies company-specific risk.
Alternatives
SPDR Russell 1000 Low Volatility Focus ETF is an excellent option for investors seeking to outperform the Style Box – Large Cap Blend segment of the market. There are other ETFs in the space which investors could consider as well.
IShares Core S&P 500 ETF (IVV – Free Report) tracks S&P 500 Index and the SPDR S&P 500 ETF (SPY – Free Report) tracks S&P 500 Index. IShares Core S&P 500 ETF has $583.68 billion in assets, SPDR S&P 500 ETF has $619.60 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
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 Blend.
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.
Financial Market Newsflash
No financial news published today. Check back later.
