SPDR® Portfolio S&P 1500 Composite Stock Market ETF (SPTM)

ETF SPDR® Portfolio S&P 1500 Composite Stock Market ETF (SPXV)

Profile:

The ETF SPDR® Portfolio S&P 1500 Composite Stock Market ETF (SPXV) is a broad-market exchange-traded fund designed to track the performance of the S&P 1500 Composite Index. This index comprises roughly 1500 U.S. stocks, representing approximately 90% of the investable U.S. equity market. SPXV offers investors diversified exposure to large, mid, and small-cap companies across various industries.

Objective:

SPXV's primary investment objective is to mirror the performance of the S&P 1500 Composite Index, providing investors with a convenient and cost-effective way to gain exposure to the overall U.S. stock market.

Issuer:

State Street Global Advisors (SSGA)

• Reputation and Reliability: SSGA is a renowned global asset management firm with a long history of providing investment solutions and managing over $4.3 trillion in assets.
• Management: The fund is managed by an experienced team of investment professionals with expertise in quantitative strategies and index tracking.

Market Share:

SPXV holds a significant market share within the broad-market ETF category. As of November 2023, it manages over $18 billion in assets.

Total Net Assets:

As of November 2023, SPXV has approximately $18.3 billion in total net assets.

Moat:

• Low Expense Ratio: SPXV's expense ratio of 0.03% is among the lowest in the broad-market ETF category, making it a cost-efficient option for investors.
• Diversification: By investing in 1500 stocks across various industries, SPXV offers significant diversification, mitigating risk associated with individual stock performance.
• Liquidity: With an average daily trading volume exceeding 1 million shares, SPXV offers investors high liquidity, ensuring ease of buying and selling shares.

Financial Performance:

• Historical Performance: SPXV has historically closely tracked the S&P 1500 Composite Index, delivering returns consistent with the broader market.
• Benchmark Comparison: SPXV's performance has generally been in line with the S&P 1500 Composite Index, demonstrating its effectiveness in tracking the benchmark.

Growth Trajectory:

The continued growth of the U.S. stock market and increasing investor demand for diversified exposure are expected to drive SPXV's growth trajectory.

Liquidity:

• Average Trading Volume: SPXV boasts an average daily trading volume exceeding 1 million shares, indicating high liquidity.
• Bid-Ask Spread: The bid-ask spread for SPXV is typically tight, reflecting the ETF's high trading activity and minimizing transaction costs.

Market Dynamics:

• Economic Growth: A strong U.S. economy can positively impact SPXV's performance as corporate earnings and stock prices tend to rise in such environments.
• Interest Rates: Rising interest rates can lead to decreased investor appetite for stocks, potentially impacting SPXV's performance.
• Sector Performance: The performance of specific sectors within the S&P 1500 Composite Index can influence SPXV's returns.

Competitors:

• iShares CORE S&P 500 ETF (IVV): 27.6% market share
• Vanguard S&P 500 ETF (VOO): 24.5% market share
• Schwab Total Stock Market Index (SWTSX): 12.3% market share

Expense Ratio:

0.03%

Investment Approach and Strategy:

• Strategy: SPXV passively tracks the S&P 1500 Composite Index.
• Composition: The ETF holds all the stocks included in the S&P 1500 Composite Index, with weights proportional to their market capitalization.

Key Points:

• Low expense ratio
• Diversified exposure to the U.S. stock market
• High liquidity
• Tracks the S&P 1500 Composite Index
• Suitable for long-term investors seeking broad market exposure

Risks:

• Market Risk: SPXV's performance is tied to the overall U.S. stock market, which can experience volatility and downturns.
• Volatility: The ETF's value can fluctuate significantly, depending on market conditions.
• Tracking Error: While SPXV aims to track the S&P 1500 Composite Index closely, there may be minor tracking errors.

Who Should Consider Investing:

• Investors seeking broad exposure to the U.S. stock market
• Long-term investors with a moderate risk tolerance
• Investors looking for a low-cost and convenient way to track the S&P 1500 Composite Index

Fundamental Rating Based on AI:

Based on an AI-based analysis considering factors like financial health, market position, and future prospects, SPXV receives a 7.5 out of 10. The fund's low expense ratio, diversified portfolio, and strong track record contribute to its positive rating. However, the inherent market risk associated with the S&P 1500 Composite Index and potential tracking errors slightly lower the score.

Resources and Disclaimers:

• State Street Global Advisors: https://www.ssga.com/us/en/individual/etfs/etf-spdr-portfolio-sp-1500-composite-stock-market-etf
• Morningstar: https://www.morningstar.com/etfs/xnas/spxv/quote
• SEC EDGAR: https://www.sec.gov/edgar/search/#/company?cik=0001099619

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