If you're interested in broad exposure to the Large Cap Value segment of the US equity market, look no further than the SPDR Portfolio S&P 500 Value ETF (SPYV), a passively managed exchange traded fund launched on 09/25/2000.

The fund is sponsored by State Street Global Advisors. It has amassed assets over $24.90 billion, making it one of the largest ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

Companies that fall in the large cap category tend to 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.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. Considering long-term performance, value stocks have outperformed growth stocks in almost all markets; however, they are more likely to underperform growth stocks in strong bull markets.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.96%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Financials sector--about 25.10% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Berkshire Hathaway Inc Cl B (BRK.B) accounts for about 3.90% of total assets, followed by Jpmorgan Chase + Co (JPM) and Exxon Mobil Corp (XOM).

The top 10 holdings account for about 19.49% of total assets under management.

Performance and Risk

SPYV seeks to match the performance of the S&P 500 Value Index before fees and expenses. The S&P 500 Value Index measures the performance of the large-capitalization value sector in the U.S. equity market.

The ETF has added about 16.56% so far this year and is up about 25.13% in the last one year (as of 11/20/2024). In the past 52-week period, it has traded between $43.77 and $54.33.

The ETF has a beta of 0.92 and standard deviation of 14.83% for the trailing three-year period, making it a medium risk choice in the space. With about 439 holdings, it effectively diversifies company-specific risk.