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. It focuses on small-cap U.S. equities exhibiting low volatility characteristics.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and established ETF issuer with a long track record in the investment management industry.

Management Expertise

SSGA has a strong team of experienced professionals managing a wide range of ETFs and investment strategies.

Goal

The ETF aims 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.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, the SSGA US Small Cap Low Volatility Index. This index is designed to measure the performance of U.S. small-capitalization stocks exhibiting low volatility.

Composition The ETF holds a portfolio of U.S. small-cap stocks selected and weighted based on their low volatility characteristics.

Market Share: Market share data for XSLV can fluctuate and is dependent on overall AUM and trading volumes within the low volatility small-cap ETF space.

Total Net Assets (AUM): 75570000

Key Competitors

• Invesco S&P SmallCap Low Volatility ETF (XSLV)
• Principal U.S. Small-Cap ETF (PSC)
• Vanguard Russell 2000 ETF (VTWO)

Competitive Landscape

The low volatility small-cap ETF market is moderately competitive. XSLV competes primarily with Invesco S&P SmallCap Low Volatility ETF (XSLV). XSLV's advantage lies in SSGA's established reputation, while disadvantages might include variations in index methodology or expense ratios compared to competitors.

Historical Performance: Historical performance data should be obtained from reputable financial data providers. Performance can fluctuate based on market conditions.

Benchmark Comparison: The ETF's performance should be compared against the SSGA US Small Cap Low Volatility Index to assess tracking efficiency.

Expense Ratio: 0.12

Average Trading Volume

The average trading volume of XSLV provides moderate liquidity and influences the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread for XSLV reflects the cost of trading; typically, smaller spreads indicates high liquidity, while wide spread might increase the cost of the trade.

Market Environment Factors

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

Growth Trajectory

The growth trajectory of XSLV depends on its ability to effectively track its index and attract assets from investors seeking low volatility small-cap exposure. Changes in index methodology or holding would affect the ETF.

Competitive Edge

XSLV's competitive edge stems from its focus on low volatility within the small-cap space, potentially offering downside protection during market downturns. SSGA's established reputation as an asset manager also provides a benefit. The ETF's index methodology seeks to identify and weight small-cap stocks with lower volatility, providing investors with a targeted approach. This specific focus differentiates XSLV from broader small-cap ETFs.

Volatility

XSLV's historical volatility should be evaluated relative to its benchmark and peer group to assess its risk profile. It aims to provide low volatility exposure.

Market Risk

The ETF is subject to market risk, including the risk of declines in the value of its underlying small-cap holdings. Small-cap stocks generally exhibit higher volatility than large-cap stocks.

Ideal Investor Profile

The ideal investor for XSLV is one seeking exposure to U.S. small-cap stocks with a focus on lower volatility. It is suitable for investors who want diversification in small-cap stock market while seeking defensive characteristics.

Market Risk

XSLV is suitable for long-term investors seeking a potentially less volatile approach to small-cap investing. It might also be used by active traders as a tactical allocation tool.

The SPDRu00ae SSGA US Small Cap Low Volatility Index ETF (XSLV) provides exposure to U.S. small-cap stocks with lower volatility characteristics. It aims to track the SSGA US Small Cap Low Volatility Index, offering investors a potentially defensive approach to small-cap investing. SSGA's established reputation supports the ETF's credibility. Investors should consider the ETF's expense ratio and trading liquidity before investing. It's well-suited for long-term investors looking for small-cap exposure with reduced volatility.

Data Sources:

• State Street Global Advisors (SSGA) website
• Financial data providers (e.g., Bloomberg, Reuters)
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions. Market share data is approximate and subject to change.