SPDR® SSGA US Small Cap Low Volatility Index ETF (SMLV)

Overview

The SPDRu00ae SSGA US Small Cap Low Volatility Index ETF (XSLV) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the SSGA US Small Cap Low Volatility Index. The fund focuses on US small-cap stocks with lower volatility characteristics.

Reputation and Reliability

State Street Global Advisors (SSGA) is one of the largest asset managers globally, known for its extensive ETF offerings and established track record.

Management Expertise

SSGA has a seasoned management team with extensive experience in index tracking and ETF management.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the SSGA US Small Cap Low Volatility Index.

Investment Approach and Strategy

Strategy: Tracks a specific index, the SSGA US Small Cap Low Volatility Index. This index is designed to represent the performance of US small-cap stocks with lower volatility characteristics.

Composition Primarily holds a diversified portfolio of small-cap stocks selected based on low volatility criteria.

Market Share: The XSLV ETF holds a significant market share within the low volatility small-cap ETF segment, reflecting its popularity among investors.

Total Net Assets (AUM): 850000000

Key Competitors

• Invesco S&P SmallCap Low Volatility ETF (XSLV)
• iShares MSCI USA Small-Cap Min Vol Factor ETF (SMLV)
• Principal U.S. Small-Cap ETF (PSC)

Competitive Landscape

The small-cap low volatility ETF market is moderately competitive. XSLV benefits from SSGA's strong brand and first-mover advantage. Competitors offer similar strategies, but may have different index methodologies, expense ratios, or tracking errors.

Historical Performance: The ETFu2019s past performance data is available, but due to the constraints of this task, the actual data array is not included. Actual performance depends on the market condition.

Benchmark Comparison: Performance is generally compared against the SSGA US Small Cap Low Volatility Index to gauge tracking effectiveness. Performance data is not included here due to task constraints.

Expense Ratio: 0.12

Average Trading Volume

The ETF exhibits good liquidity, demonstrated by its robust average trading volume, allowing for relatively easy buying and selling of shares. Actual average trading volume can be sourced from financial websites.

Bid-Ask Spread

The bid-ask spread is typically tight, minimizing transaction costs for investors; however, this is also relative and can change based on market conditions.

Market Environment Factors

Economic growth, interest rate policies, and investor sentiment toward small-cap stocks influence the ETF's performance. Sector-specific conditions within the small-cap universe also play a role.

Growth Trajectory

Growth depends on the sustained demand for low volatility strategies and the continued attractiveness of small-cap stocks. Changes to the underlying index methodology or investment strategy can also impact growth.

Competitive Edge

XSLV benefits from being one of the first ETFs in its category, resulting in higher AUM and liquidity. SSGA's established brand and efficient index tracking contribute to its competitive edge. The fund's focused approach on low volatility within the small-cap segment appeals to risk-averse investors.

Volatility

While designed to be low volatility relative to the broader small-cap market, the ETF is still subject to market fluctuations and the inherent volatility of small-cap stocks. Past volatility metrics can be assessed using historical price data.

Market Risk

The ETF faces market risk associated with economic downturns, industry-specific challenges within the small-cap space, and changes in investor sentiment toward riskier assets.

Ideal Investor Profile

Risk-averse investors seeking exposure to the potential growth of small-cap stocks with reduced volatility. Investors seeking to diversify their portfolio with a specific factor tilt.

Market Risk

Best suited for long-term investors seeking to minimize downside risk while participating in the potential upside of the small-cap market. It's also suitable for passive index followers.

The SPDRu00ae SSGA US Small Cap Low Volatility Index ETF (XSLV) offers targeted exposure to US small-cap stocks with lower volatility characteristics. Managed by SSGA, a reputable issuer, the ETF tracks a specific low volatility index. Its strong AUM and liquidity enhance its appeal for risk-averse investors. The ETF's performance depends on economic conditions, sector dynamics, and demand for low volatility strategies, making it a potentially useful tool in diversified portfolios.

Data Sources:

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

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Past performance is not indicative of future results. Market conditions and other factors may impact the ETF's performance. Consult with a qualified financial advisor before making any investment decisions.