Is SPDR Russell 1000 Low Volatility Focus ETF (ONEV) a Strong ETF Right Now?

The SPDR Russell 1000 Low Volatility Focus ETF (ONEV) was launched on 12/02/2015, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?

The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.

Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.

Fund Sponsor & Index

Because the fund has amassed over $569.52 million, this makes it one of the average sized ETFs in the Style Box - Large Cap Blend. ONEV is managed by State Street Global Advisors. ONEV, before fees and expenses, seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index.

The Russell 1000 Low Volatility Focused Factor Index reflects 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.

Cost & Other Expenses

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.20%, making it on par with most peer products in the space.

It's 12-month trailing dividend yield comes in at 1.93%.

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 in the Industrials sector - about 18.10% of the portfolio. Healthcare and Financials round out the top three.

Looking at individual holdings, Bristol Myers Squibb Co (BMY) accounts for about 1.55% of total assets, followed by Cognizant Tech Solutions A (CTSH) and Cardinal Health Inc (CAH).

ONEV's top 10 holdings account for about 10.44% of its total assets under management.

Performance and Risk

So far this year, ONEV has lost about -0.18%, and is up about 6.73% in the last one year (as of 05/07/2025). During this past 52-week period, the fund has traded between $114.16 and $135.42.

ONEV has a beta of 0.89 and standard deviation of 15.40% for the trailing three-year period. With about 432 holdings, it effectively diversifies company-specific risk.

Alternatives

SPDR Russell 1000 Low Volatility Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

SPDR S&P 500 ETF (SPY) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. SPDR S&P 500 ETF has $575.93 billion in assets, Vanguard S&P 500 ETF has $614.43 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend.

Bottom Line

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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This article originally published on Zacks Investment Research (zacks.com).

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