State Street Global Advisors (SSGA) begun trading of 3 new ETFs, the SPDR Russell 1000 Momentum Focus ETF (NYSE: ONEO), the SPDR Russell 1000 Low Volatility Focus ETF (NYSE: ONEV) and the SPDR Russell 1000 Yield Focus ETF (NYSE: ONEY) on Thursday, December 03, 2015. Here is a synopsis of the new ETFs:
1.
FUND INFORMATION:
| Symbol: ONEO | Exchange: NYSE ARCA |
| Name: SPDR Russell 1000 Momentum Focus ETF | Net Expense Ratio: 0.20% |
FUND OBJECTIVE:
The SPDR Russell 1000 Momentum Focus ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Russell 1000 Momentum Focused Factor Index.
REFERENCE INDEX:
The Russell 1000 Momentum Focused Factor Index is designed to reflect the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors (high value, high quality, and low size characteristics), with a focus factor comprising high momentum characteristics .
To construct the Index, Frank Russell Company (Index Provider) utilizes a proprietary rules-based multi-factor scoring process that seeks to increase exposure (or “tilt”) to companies in the Russell 1000 Index demonstrating the Factor Characteristics. The Russell 1000 Index is a market-capitalization index that measures the performance of the large-cap segment of the U.S. equity universe. Within the multi-factor scoring process, a specific focus is applied towards a company’s momentum factor. Companies with higher momentum are those whose securities have had higher recent price performance compared to other securities. Each stock’s combined multi-factor score is multiplied by the stock’s free float market cap weight in the Russell 1000 Index to determine the constituents of the Index and each constituent’s weight in the Index. Companies in the Russell 1000 Index are excluded from the Index if they do not meet a minimum weight in the Index. A company’s momentum factor score is based on historical total return over the 11 months ending on the last business day of the month prior to the Index rebalancing month. A company’s value factor score is based on cash flow yield, earnings yield, and sales to price ratio, calculated based on the company’s total market capitalization and information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s quality factor score is based on return on assets, change in asset turnover, accruals, and leverage, calculated based on information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s size factor score is based on total market capitalization as of the last business day of the month prior to the Index rebalancing month.
The weight of each individual stock in the Index is capped at 2000% of the stock’s weight in the Russell 1000 Index, and any weight exceeding this limit will be redistributed to all stocks below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index is capped at 120% of the industry’s weight in the Russell 1000 Index plus an additional 5%, and any weight exceeding this limit is redistributed to all other industries below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index must be at least 80% of the industry’s weight in the Russell 1000 Index less 5%. The weights of any industries below this minimum will be increased to the minimum by redistributing the weights of industries above the minimum in proportion to their combination of market capitalization and factor scoring. The Index is rebalanced semi-annually in June and December.
As of September 30, 2015 a significant portion of the Index comprised companies in the consumer services and industrial sectors, although this may change from time to time. As of September 30, 2015 there were approximately 894 securities in the Index.
Top Holdings (12/03/15):
| Southwest Airlines Co. | 0.88% |
| AmerisourceBergen Corporation | 0.84% |
| Alaska Air Group Inc. | 0.80% |
| Staples Inc. | 0.77% |
| Kroger Co. | 0.74% |
| Lear Corporation | 0.66% |
| Western Union Company | 0.59% |
| Bunge Limited | 0.54% |
| Bed Bath & Beyond Inc. | 0.53% |
| Northrop Grumman Corporation | 0.53% |
Useful Links:
ONEO Home Page
Category: Equities> Regions> USA> US Size> US Large Cap
2.
FUND INFORMATION:
| Symbol: ONEV | Exchange: NYSE ARCA |
| Name: SPDR Russell 1000 Low Volatility Focus ETF | Net Expense Ratio: 0.20% |
FUND OBJECTIVE:
The SPDR Russell 1000 Low Volatility Focus ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Russell 1000 Low Volatility Focused Factor Index.
REFERENCE INDEX:
The Russell 1000 Low Volatility Focused Factor Index s designed to reflect the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors (high value, high quality, and low size characteristics), with a focus factor comprising low volatility characteristics.
To construct the Index, Frank Russell Company (Index Provider) utilizes a proprietary rules-based multi-factor scoring process that seeks to increase exposure (or “tilt”) to companies in the Russell 1000 Index demonstrating the Factor Characteristics. The Russell 1000 Index is a market-capitalization index that measures the performance of the large-cap segment of the U.S. equity universe. Within the multi-factor scoring process, a specific focus is applied towards a company’s volatility factor. Volatility is a statistical measurement of the magnitude of movements in a stock’s price over time. Each stock’s combined multi-factor score is multiplied by the stock’s free float market cap weight in the Russell 1000 Index to determine the constituents of the Index and each constituent’s weight in the Index. Companies in the Russell 1000 Index are excluded from the Index if they do not meet a minimum weight in the Index. A company’s volatility factor score is based on the standard deviation of weekly total returns to a company’s stock price over the trailing five years ending on the last business day of the month prior to the Index rebalancing month. A company’s value factor score is based on cash flow yield, earnings yield, and sales to price ratio, calculated based on the company’s total market capitalization and information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s quality factor score is based on return on assets, change in asset turnover, accruals, and leverage, calculated based on information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s size factor score is based on total market capitalization as of the last business day of the month prior to the Index rebalancing month.
The weight of each individual stock in the Index is capped at 2000% of the stock’s weight in the Russell 1000 Index, and any weight exceeding this limit will be redistributed to all stocks below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index is capped at 120% of the industry’s weight in the Russell 1000 Index plus an additional 5%, and any weight exceeding this limit is redistributed to all other industries below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index must be at least 80% of the industry’s weight in the Russell 1000 Index less 5%. The weights of any industries below this minimum will be increased to the
minimum by redistributing the weights of industries above the minimum in proportion to their combination of market capitalization and factor scoring. The Index is rebalanced annually in June.
As of September 30, 2015 a significant portion of the Index comprised companies in the industrial, financial, consumer services and consumer goods sectors, although this may change from time to time. As of September 30, 2015 there were approximately 396 securities in the Index.
Top Holdings (12/02/15):
| Sysco Corporation | 1.30% |
| AmerisourceBergen Corporation | 1.14% |
| Genuine Parts Company | 1.03% |
| Kroger Co. | 0.95% |
| Kimberly-Clark Corporation | 0.91% |
| Progressive Corporation | 0.90% |
| Henry Schein Inc. | 0.89% |
| Amdocs Limited | 0.83% |
| Chubb Corporation | 0.83% |
| Everest RE Group Ltd. | 0.79% |
Useful Links:
ONEV Home Page
Category: Equities> Regions> USA> US Size> US Large Cap
3.
FUND INFORMATION:
| Symbol: ONEY | Exchange: NYSE ARCA |
| Name: SPDR Russell 1000 Yield Focus ETF | Net Expense Ratio: 0.20% |
FUND OBJECTIVE:
The SPDR Russell 1000 Yield Focus ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Russell 1000 Yield Focused Factor Index.
REFERENCE INDEX:
The Russell 1000 Yield Focused Factor Index is designed to reflect the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors (high value, high quality, and low size characteristics), with a focus factor comprising high yield characteristics.
To construct the Index, Frank Russell Company (Index Provider) utilizes a proprietary rules-based multi-factor scoring process that seeks to increase exposure (or “tilt”) to companies in the Russell 1000 Index demonstrating the Factor Characteristics. The Russell 1000 Index is a market-capitalization index that measures the performance of the large-cap segment of the U.S. equity universe. Within the multi-factor scoring process, a specific focus is applied towards a company’s yield factor. Each stock’s combined multi-factor score is multiplied by the stock’s free float market cap weight in the Russell 1000 Index to determine the constituents of the Index and each constituent’s weight in the Index. Companies in the Russell 1000 Index are excluded from the Index if they do not meet a minimum weight in the Index. A company’s yield factor score is based on 12-month trailing dividend yield as of the last business day of the month prior to the Index rebalancing month. A company’s value factor score is based on cash flow yield, earnings yield, and sales to price ratio, calculated based on the company’s total market capitalization and information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s quality factor score is based on return on assets, change in asset turnover, accruals, and leverage, calculated based on information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s size factor score is based on total market capitalization as of the last business day of the month prior to the Index rebalancing month.
The weight of each individual stock in the Index is capped at 2000% of the stock’s weight in the Russell 1000 Index, and any weight exceeding this limit will be redistributed to all stocks below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index is capped at 120% of the industry’s weight in the Russell 1000 Index plus an additional 5%, and any weight exceeding this limit is redistributed to all other industries below the limit in proportion to their combination of market capitalization and factor scoring. The weight of each industry in the Index must be at least 80% of the industry’s weight in the Russell 1000 Index less 5%. The weights of any industries below this minimum will be increased to the
minimum by redistributing the weights of industries above the minimum in proportion to their combination of market capitalization and factor scoring. The Index is rebalanced annually in June.
As of September 30, 2015, a significant portion of the Index comprised companies in the industrial and financial sectors, although this may change from time to time. As of September 30, 2015, there were approximately 250 securities in the Index.
Top Holdings (12/02/15):
| CenturyLink Inc. | 1.54% |
| Sysco Corporation | 1.49% |
| National Oilwell Varco Inc. | 1.48% |
| Genuine Parts Company | 1.13% |
| Occidental Petroleum Corporation | 1.10% |
| KLA-Tencor Corporation | 1.08% |
| Marathon Oil Corporation | 0.99% |
| Kimberly-Clark Corporation | 0.98% |
| HollyFrontier Corporation | 0.97% |
| H&R Block Inc. | 0.95% |
Category: Equities> Regions> USA> US Income> US Dividends