SPDR® SSGA US Small Cap Low Volatility Index ETF (SMLV)

Summary of US ETF SPDR® SSGA US Small Cap Low Volatility Index ETF

Profile:

The SPDR® SSGA US Small Cap Low Volatility Index ETF (NYSE Arca: SLYV) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Solactive US Small Cap Low Volatility Index. This index consists of small-cap US stocks with lower volatility compared to the broader small-cap market. The ETF invests primarily in stocks from various industries, including consumer discretionary, financials, industrials, healthcare, and technology, with a focus on companies with low volatility.

Objective:

SLYV's primary objective is to provide investors with exposure to small-cap stocks with lower risk through diversification and volatility mitigation. This can be attractive for investors who want to participate in the growth potential of small-cap companies while managing volatility.

Issuer:

State Street Global Advisors (SSGA) is the issuer of SLYV. SSGA is one of the world's largest asset managers, with over $4 trillion in assets under management. The firm has a strong reputation for providing investment solutions and is known for its expertise in index-tracking products.

Market Share:

SLYV has a market share of approximately 10% within the small-cap low volatility ETF category.

Total Net Assets:

As of November 1st, 2023, SLYV has approximately $10 billion in total net assets.

Moat:

SLYV's competitive advantages include:

• Low Fees: The expense ratio of SLYV is relatively low at 0.15%, making it an attractive option for cost-conscious investors.
• Diversification: The ETF's broad exposure across various industries helps reduce company-specific risks.
• Low Volatility: SLYV's focus on low volatility stocks can help mitigate portfolio fluctuations during market downturns.

Financial Performance:

Historically, SLYV has delivered positive returns with lower volatility compared to the broader small-cap market. However, its performance can vary depending on market conditions and broader economic factors.

Growth Trajectory:

The demand for low volatility investment strategies is expected to continue growing as investors seek to mitigate risks and preserve capital. This could benefit SLYV's future growth prospects.

Liquidity:

SLYV has a relatively high average trading volume, indicating good liquidity. The bid-ask spread is also tight, suggesting low trading costs.

Market Dynamics:

Several factors can impact SLYV's performance, such as:

• Interest Rate Changes: Rising interest rates can impact small-cap stocks more than larger companies.
• Economic Growth: Strong economic growth can benefit small-cap stocks, while slower growth can negatively impact them.
• Market Volatility: Increased market volatility can lead to increased volatility in SLYV.

Competitors:

Key competitors of SLYV include:

• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap Value ETF (VBR)
• iShares Russell 2000 Value ETF (IWM)

Expense Ratio:

The expense ratio of SLYV is 0.15%.

Investment Approach and Strategy:

SLYV is an index-tracking ETF that aims to replicate the performance of the Solactive US Small Cap Low Volatility Index. The ETF invests in the underlying index constituents, which are selected based on their low volatility characteristics.

Key Points:

• Focus on small-cap US stocks with low volatility
• Diversified across various industries
• Low expense ratio
• Suitable for investors seeking growth with lower risk

Risks:

• Small-cap stock volatility
• Market risk
• Tracking error risk

Who Should Consider Investing:

SLYV can be suitable for investors seeking:

• Exposure to small-cap stocks with lower volatility
• Diversification within a single investment
• Low-cost investment options

Evaluation of ETF SPDR® SSGA US Small Cap Low Volatility Index ETF's fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI':

Fundamental Rating Based on AI: 8/10

SLYV scores well in the AI-based fundamental analysis due to its:

• Strong track record
• Low expense ratio
• Diversified portfolio
• Focus on low volatility
• High liquidity
• Established and reputable issuer

However, investors should be aware of the potential risks associated with small-cap stocks and market volatility.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 1st, 2023. Data sources include SSGA's website, ETF.com, and Bloomberg Terminal.

Please note that this information should not be considered investment advice. It is essential to conduct your own due diligence before making any investment decisions.