Analyzing SPDR S&P 500 Value ETF's Market Position and Performance

SPDR Portfolio S&P 500 Value ETF (SPYV) offers an attractive option for investors seeking large-cap value exposure. With a low expense ratio and a stable performance profile, SPYV remains a strong choice despite slight setbacks this year.

Date: 26-05-2025

AI Rating: 6

The SPDR Portfolio S&P 500 Value ETF (SPYV) presents a compelling investment opportunity for professionals looking for broad exposure to the Large Cap Value segment of the US equity market. With over $25.25 billion in assets, it ranks among the largest ETFs in its category.

Expense Ratio and Dividend Yield: The ETF's annual operating expenses are remarkably low at 0.04%, making it one of the cheapest options available in the market. Additionally, it offers a 12-month trailing dividend yield of 2.19%, providing a decent income for investors.

Sector Exposure and Holdings: SPYV's allocation predominantly favors the Information Technology sector at 23.70%, with major holdings including Apple Inc. (AAPL), Microsoft Corp (MSFT), and Amazon.com Inc (AMZN). This concentration in high-performing tech stocks can escalate potential returns, particularly in a recovering economy where tech tends to lead market gains.

Performance Insights: So far this year, SPYV has experienced a decline of approximately -1.84%. However, its performance over the last year shows a positive trend, up by about 4.29%. The ETF's beta of 0.88 indicates lower volatility compared to the broader market, which is advantageous for conservative investors.

Risk Assessment: With a standard deviation of 15.25% over the last three years, SPYV is classified as a medium-risk choice. This risk profile, coupled with a diversified portfolio of around 400 holdings, effectively minimizes company-specific risk, thereby appealing to risk-averse investors.

Buy Rating: The ETF holds a Zacks ETF Rank of 2 (Buy), suggesting positive future performance based on various indicators including momentum and expected returns, which could attract potential buyers with a moderate risk appetite.

Stocks: AAPL MSFT AMZN