Should State Street SPDR Russell 1000 Yield Focus ETF (ONEY) Be on Your Investing Radar?

Launched on December 2, 2015, the State Street SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.The fund is sponsored by State Street Investment Management. It has amassed assets over $841.87 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueLarge cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.While 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. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets. CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.2%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 3.12%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector -- about 13.7% of the portfolio. Consumer Staples and Financials round out the top three.Looking at individual holdings, United Parcel Service Cl B (UPS) accounts for about 2.23% of total assets, followed by Eog Resources Inc (EOG) and Target Corp (TGT).The top 10 holdings account for about 13.67% of total assets under management.Performance and RiskONEY seeks to match the performance of the Russell 1000 Yield Focused Factor Index before fees and expenses. The Russell 1000 Yield 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 high yield characteristics.The ETF has added roughly 8.66% so far this year and was up about 7.51% in the last one year (as of 12/29/2025). In the past 52-week period, it has traded between $95.52 and $116.46.The ETF has a beta of 0.89 and standard deviation of 14.93% for the trailing three-year period. With about 306 holdings, it effectively diversifies company-specific risk.AlternativesState Street SPDR Russell 1000 Yield Focus ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ONEY is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $71.82 billion in assets, Vanguard Value ETF has $157.36 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.04%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report State Street SPDR Russell 1000 Yield Focus ETF (ONEY): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks