SPYV - SPYV: Performance Will Be Inferior To The S&P 500 Index In The Long Run

2024-06-06 08:31:40 ET

Summary

• SPDR Portfolio S&P 500 Value ETF owns value stocks in the S&P 500 index with lower P/E, P/B, and P/S ratios.
• SPYV has performed well in the past 2-3 years but has lagged behind its peer funds, SPDR S&P 500 ETF and S&P 500 Growth ETF.
• SPYV's allocation to growth sectors is limited, leading to potential underperformance compared to SPY and SPYG in the long run.

ETF Overview

SPDR Portfolio S&P 500 Value ETF ( SPYV ) owns a portfolio of value stocks in the S&P 500 index. These stocks have lower P/E, P/B, and P/S ratio than the S&P 500 index. SPYV has an expense ratio of 0.04%. This is comparable to its peer fund S&P 500 Growth ETF ( SPYG ), which has the same expense ratio. Due to SPYV’s inferior growth characteristics, SPYV’s performance will likely lag SPYG and the S&P 500 index in the long run. The fund’s valuation also appears elevated relative to its historical average. Therefore, we think investors may want to wait on the sidelines or seek other funds instead....

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