SPDR® Russell 1000 Momentum Focus ETF (ONEO)

Overview

The SPDRu00ae Russell 1000 Momentum Focus ETF (IWL) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Russell 1000 Momentum Focused Factor Index. It focuses on stocks with high price momentum within the Russell 1000 Index, aiming for capital appreciation through dynamic sector allocation based on momentum factors.

Reputation and Reliability

State Street Global Advisors (SSGA) is a large and reputable asset manager with a long track record of managing ETFs.

Management Expertise

SSGA has extensive experience in index tracking and factor-based investing, leveraging its research and portfolio management capabilities to manage the ETF effectively.

Goal

To provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Russell 1000 Momentum Focused Factor Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Russell 1000 Momentum Focused Factor Index.

Composition The ETF primarily holds stocks selected from the Russell 1000 index based on their momentum scores. Sector allocation is dynamic and driven by momentum factors.

Market Share: The market share of IWL within the momentum ETF segment is considerable, though not dominant, owing to competition from other established players.

Total Net Assets (AUM): 153300000

Key Competitors

• Invesco DWA Momentum ETF (PDP)
• iShares MSCI USA Momentum Factor ETF (MTUM)
• VictoryShares USAA MSCI USA Value Momentum ETF (UVM)

Competitive Landscape

The momentum ETF market is competitive. IWL benefits from SSGA's reputation and a focus on the Russell 1000 universe. Competitors offer different methodologies and factor weightings, potentially leading to varying performance. IWL's disadvantage might be lower AUM compared to MTUM which makes it slightly less liquid.

Historical Performance: Historical performance varies depending on the time period and prevailing market conditions. Past performance is not indicative of future results.

Benchmark Comparison: The ETF's performance should be compared to the Russell 1000 Momentum Focused Factor Index to assess tracking efficiency.

Expense Ratio: 0.15

Average Trading Volume

The average trading volume for IWL is moderate, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting the ETF's liquidity and the efficiency of its trading.

Market Environment Factors

Economic growth, interest rate movements, and sector-specific trends can influence the performance of momentum stocks held by IWL.

Growth Trajectory

IWL's growth trajectory is tied to the popularity of momentum investing and the relative performance of momentum factors in the market. Strategy and holdings get updated based on index rebalancing.

Competitive Edge

IWL's competitive edge lies in its selection methodology of focusing on momentum within the Russell 1000 index and being managed by SSGA. The fund is diversified among large-cap US stocks with strong recent performance, aiming to capture higher returns during periods of market uptrends. The low expense ratio of 0.15% can also attract cost-conscious investors. SSGA's brand and track record in factor-based investing provide credibility.

Volatility

IWL may exhibit higher volatility than broad market ETFs due to its focus on momentum stocks, which can be prone to rapid price swings.

Market Risk

The ETF is subject to market risk, including the risk of declines in the overall stock market and sector-specific risks associated with the industries in which it invests.

Ideal Investor Profile

The ideal investor is one seeking capital appreciation through exposure to momentum stocks, comfortable with potentially higher volatility, and has a long-term investment horizon.

Market Risk

IWL is suitable for long-term investors with a higher risk tolerance seeking to outperform the broad market through momentum factor exposure.

The SPDRu00ae Russell 1000 Momentum Focus ETF (IWL) offers exposure to U.S. large-cap stocks exhibiting strong price momentum. Managed by SSGA, it tracks the Russell 1000 Momentum Focused Factor Index. While it carries some volatility due to its investment strategy, its low expense ratio and SSGA's brand make it a noteworthy option for investors seeking momentum-driven returns. Potential investors should consider their risk tolerance and time horizon before investing. The ETF can be a valuable tool for diversification if used with caution.

Data Sources:

• State Street Global Advisors (SSGA)
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results.