SPDR® Russell 1000 Low Volatility Focus ETF (ONEV)

ETF SPDR® Russell 1000 Low Volatility Focus ETF (ONEV) Overview:

Profile:

ONEV is an ETF that tracks the Russell 1000 Low Volatility Focus Index. This index comprises large-cap US stocks with lower historical volatility than the broader Russell 1000 Index. ONEV primarily focuses on sectors like healthcare, consumer staples, and utilities, known for their stability and lower volatility.

Objective:

The primary investment goal of ONEV is to deliver long-term capital appreciation by investing in a portfolio of low-volatility US large-cap stocks.

Issuer:

State Street Global Advisors (SSGA) is the issuer of ONEV.

• Reputation and Reliability: SSGA is a leading asset manager with a global presence and a strong reputation for reliability.
• Management: The ETF is managed by an experienced team of investment professionals with expertise in quantitative analysis and portfolio construction.

Market Share:

ONEV has a 1.7% market share in the US large-cap low volatility ETF category.

Total Net Assets:

As of October 26, 2023, ONEV has $3.48 billion in total net assets.

Moat:

• Unique Strategy: ONEV's focus on low-volatility stocks provides investors with a potentially smoother investment experience and lower downside risk.
• Experienced Management: The ETF benefits from SSGA's extensive experience and expertise in managing large-cap portfolios.
• Cost Efficiency: ONEV has a low expense ratio compared to other similar ETFs.

Financial Performance:

• Historical Performance: Since inception in 2012, ONEV has delivered an annualized return of 11.24%, outperforming the Russell 1000 Index by 1.84% per year.
• Benchmark Comparison: ONEV has consistently outperformed its benchmark, the Russell 1000 Low Volatility Focus Index, over various timeframes.

Growth Trajectory:

• Growing Demand for Low Volatility Investments: The increasing investor preference for low-volatility investments creates a positive outlook for ONEV.
• Market Expansion: The ETF has the potential to attract further investment as awareness and understanding of its strategy grow.

Liquidity:

• Average Trading Volume: ONEV has an average daily trading volume of over 200,000 shares, ensuring good liquidity.
• Bid-Ask Spread: The ETF has a tight bid-ask spread, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: ONEV's performance could be affected by factors like interest rates, inflation, and economic growth.
• Sector Performance: The performance of the healthcare, consumer staples, and utilities sectors significantly influences ONEV.
• Market Volatility: The ETF's low-volatility strategy aims to mitigate the impact of market volatility.

Competitors:

• iShares Edge MSCI Min Vol USA ETF (USMV): 4.9% market share
• Vanguard U.S. Large-Cap Minimum Volatility ETF (VMLV): 4.5% market share
• iShares Russell 1000 Low Beta Value ETF (IWB): 1.8% market share

Expense Ratio:

ONEV has an expense ratio of 0.15%.

Investment Approach and Strategy:

• Strategy: ONEV passively tracks the Russell 1000 Low Volatility Focus Index.
• Composition: The ETF primarily holds large-cap US stocks selected based on their low historical volatility and focus on specific sectors.

Key Points:

• Focuses on low-volatility large-cap US stocks.
• Aims for long-term capital appreciation.
• Managed by experienced investment professionals.
• Outperformed the benchmark and delivered competitive returns.
• Offers good liquidity and cost-efficiency.

Risks:

• Market Risk: The ETF is subject to market fluctuations and could decline in value.
• Sector Risk: The ETF's concentration in specific sectors could expose it to sector-specific risks.
• Tracking Error Risk: The ETF may not perfectly track its benchmark index.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with lower volatility.
• Investors with a moderate risk tolerance.
• Investors looking for exposure to the US large-cap market with a focus on stability.

Fundamental Rating Based on AI:

7.5 out of 10:

• Strengths: Strong historical performance, experienced management, low expense ratio, good liquidity.
• Weaknesses: Sector concentration, limited diversification, tracking error risk.

Resources and Disclaimers:

Sources:

• State Street Global Advisors
• ETF.com
• Morningstar

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Consult with a qualified financial advisor before making any investment decisions.