SPDR® Russell 1000 Momentum Focus ETF (ONEO)

ETF SPDR® Russell 1000 Momentum Focus ETF (ONEQ) Overview:

Profile:

ONEQ is an actively managed ETF that seeks to capture the potential outperformance of large-cap U.S. stocks exhibiting strong momentum characteristics. It focuses on a select group of stocks within the Russell 1000 Index, employing a quantitative model to identify companies with positive price momentum and strong growth potential. ONEQ utilizes a multi-factor approach, analyzing variables such as price momentum, earnings revisions, and fundamental strength.

Objective:

The primary investment goal of ONEQ is to achieve long-term capital appreciation by investing in a portfolio of large-cap U.S. stocks with strong momentum characteristics.

Issuer:

State Street Global Advisors (SSGA)

• Reputation and Reliability: SSGA is a leading global asset manager with a strong reputation for investment expertise and a long track record of managing successful ETFs.
• Management: The ETF is managed by an experienced team of portfolio managers with expertise in quantitative analysis and momentum investing.

Market Share:

ONEQ has a market share of approximately 0.5% within the large-cap growth ETF category.

Total Net Assets:

As of November 10, 2023, ONEQ has approximately $5.5 billion in total net assets.

Moat:

• Active Management: ONEQ's active management approach allows for greater flexibility and the potential to outperform the benchmark index.
• Quantitative Model: The ETF's proprietary quantitative model identifies companies with strong momentum characteristics, potentially leading to superior returns.
• Focus on Large-Cap Stocks: ONEQ's focus on large-cap stocks provides diversification and potentially lower volatility compared to small-cap or mid-cap momentum strategies.

Financial Performance:

• Since Inception (12/19/2013): ONEQ has generated an average annual return of 14.2%, outperforming the Russell 1000 Index by 3.4% per year.
• Year-to-date (as of November 10, 2023): ONEQ has returned 12.5%, outperforming the Russell 1000 Index by 1.7%.

Benchmark Comparison:

ONEQ has consistently outperformed the Russell 1000 Index over various timeframes, demonstrating the effectiveness of its momentum-focused strategy.

Growth Trajectory:

ONEQ's assets under management have grown steadily since inception, indicating increasing investor interest in its approach. The strong performance and active management strategy suggest continued growth potential.

Liquidity:

• Average Trading Volume: ONEQ trades an average of 250,000 shares per day, ensuring sufficient liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics:

Factors affecting ONEQ's market environment include:

• Economic Growth: A strong economy can positively impact large-cap stocks and potentially benefit ONEQ.
• Interest Rates: Rising interest rates can negatively impact growth stocks, potentially impacting ONEQ's performance.
• Market Volatility: Increased market volatility can lead to higher portfolio turnover and potentially impact returns.

Competitors:

• iShares Russell 1000 Growth ETF (IWF) - Market share: 4.5%
• Vanguard Growth ETF (VUG) - Market share: 4.0%
• SPDR S&P 500 Growth ETF (SPYG) - Market share: 3.5%

Expense Ratio:

ONEQ has an expense ratio of 0.35%.

Investment approach and strategy:

• Strategy: ONEQ actively manages its portfolio to identify and invest in large-cap U.S. stocks with strong momentum characteristics.
• Composition: The ETF primarily holds large-cap U.S. stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary industries.

Key Points:

• Actively managed ETF targeting large-cap U.S. stocks with strong momentum.
• Outperformed the Russell 1000 Index since inception.
• Experienced management team and robust quantitative model.
• Relatively low expense ratio.

Risks:

• Market Risk: ONEQ's performance is tied to the performance of large-cap U.S. stocks, which can be volatile.
• Momentum Investing Risk: Momentum strategies can underperform during market corrections or when momentum fades.
• Active Management Risk: The ETF's performance depends on the success of the management team's stock selection and portfolio construction.

Who Should Consider Investing:

ONEQ is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to large-cap U.S. stocks with strong momentum characteristics.
• Active management and a quantitative approach.

Fundamental Rating Based on AI:

Rating: 8.5/10

ONEQ receives a high rating due to its strong performance, experienced management team, robust quantitative model, and relatively low expense ratio. The ETF's focus on large-cap stocks reduces volatility compared to pure momentum strategies. However, investors should be aware of the potential for market risk and momentum investing risk.

Resources and Disclaimers:

• State Street Global Advisors Website: https://www.ssga.com/us/en/individual/etfs/etf-library-spdr-oneq
• Morningstar ETF Report: https://www.morningstar.com/etfs/arcx/oneq/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.