Should SPDR Russell 1000 Momentum Focus ETF (ONEO) Be on Your Investing Radar?
Style Box ETF report for ONEO
Looking for broad exposure to the Large Cap Blend segment of the US equity market? You should consider the SPDR Russell 1000 Momentum Focus ETF (ONEO), a passively managed exchange traded fund launched on 12/02/2015.
The fund is sponsored by State Street Global Advisors. It has amassed assets over $324.72 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Large cap companies usually have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.09%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 18.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Hp Inc. (HPQ) accounts for about 1.15% of total assets, followed by Dell Technologies Inc Class C (DELL) and Netapp Inc. (NTAP).
The top 10 holdings account for about 5.83% of total assets under management.
Performance and Risk
ONEO seeks to match the performance of the Russell 1000 Momentum Focused Factor Index before fees and expenses. The Russell 1000 Momentum Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors with a focus factor comprising high momentum characteristics.
The ETF has gained about 24.02% so far this year and was up about 36.36% in the last one year (as of 09/03/2021). In the past 52-week period, it has traded between $70.62 and $103.38.
The ETF has a beta of 1.14 and standard deviation of 24.17% for the trailing three-year period. With about 911 holdings, it effectively diversifies company-specific risk.
SPDR Russell 1000 Momentum Focus ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ONEO is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $306.67 billion in assets, SPDR S&P 500 ETF has $400.60 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
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.
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SPDR Russell 1000 Momentum Focus ETF (ONEO): ETF Research Reports
HP Inc. (HPQ): Free Stock Analysis Report
Dell Technologies Inc. (DELL): Free Stock Analysis Report
NetApp, Inc. (NTAP): Free Stock Analysis Report
SPDR S&P 500 ETF (SPY): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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