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 U.S. small-cap stocks with lower volatility characteristics. The ETF aims to offer downside protection during market downturns by selecting stocks based on their historical volatility.

Reputation and Reliability

State Street Global Advisors (SSGA) is a well-established and reputable asset manager with a long track record of providing various investment solutions.

Management Expertise

SSGA has extensive experience in managing index-based ETFs and a dedicated team responsible for overseeing the XSLV ETF.

Goal

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 the SSGA US Small Cap Low Volatility Index, which selects stocks from the small-cap universe based on their low volatility scores.

Composition The ETF primarily holds a diversified portfolio of U.S. small-cap stocks selected based on their low volatility characteristics. The holdings can vary across different sectors based on volatility criteria.

Market Share: The SPDRu00ae SSGA US Small Cap Low Volatility Index ETF holds a moderate market share within the low volatility small-cap ETF segment.

Total Net Assets (AUM): 597700000

Key Competitors

• Invesco S&P SmallCap Low Volatility ETF (XSLV)
• Principal U.S. Small-Cap Multi-Factor Index ETF (PSC)
• Dimensional US Small Cap Value ETF (DFSV)

Competitive Landscape

The competitive landscape is characterized by several ETFs offering low volatility exposure in the small-cap space. XSLV benefits from SSGA's brand recognition but faces competition from other ETFs with potentially lower expense ratios or different factor exposures. XSLV's advantages lie in its straightforward low volatility strategy, while disadvantages may include higher expense ratio versus some competitors. It closely matches its index, a benefit in terms of tracking error, but may not outperform as much as actively managed funds.

Historical Performance: Historical performance data can be found on the SPDR's official website and financial data providers. Historical Performance should not be used as a predictor for future performance.

Benchmark Comparison: Performance should be compared to the SSGA US Small Cap Low Volatility Index to assess tracking effectiveness.

Expense Ratio: 0.12

Average Trading Volume

The ETF's average trading volume is moderate, generally sufficient for most retail investors, but could impact larger institutional trades.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting the ETF's relative liquidity, making it cost-effective to trade.

Market Environment Factors

Economic indicators such as interest rates, GDP growth, and inflation influence the performance of small-cap stocks. Market sentiment and risk appetite significantly impact low volatility strategies.

Growth Trajectory

Growth trajectory is dependent on broader economic conditions and the sustained demand for low volatility strategies. Any changes to the index methodology or holdings may impact the ETF's future performance.

Competitive Edge

XSLV benefits from the established reputation of SSGA as a leading ETF provider. Its low volatility strategy appeals to risk-averse investors, providing a degree of downside protection during market turmoil. This ETF offers targeted exposure to small-cap stocks exhibiting lower volatility than the broader market. The clear and transparent index methodology contributes to investor confidence.

Volatility

XSLV aims to exhibit lower volatility compared to the broader small-cap market but is still subject to market fluctuations.

Market Risk

The ETF is exposed to market risk, particularly the specific risks associated with small-cap stocks, such as lower liquidity and higher sensitivity to economic downturns.

Ideal Investor Profile

The ideal investor is a risk-averse investor seeking exposure to small-cap equities with a focus on downside protection. Suitable for investors seeking less volatile exposure to the small-cap market.

Market Risk

XSLV is best suited for long-term investors looking for a less volatile allocation to small-cap stocks within a diversified portfolio.

The SPDRu00ae SSGA US Small Cap Low Volatility Index ETF (XSLV) offers exposure to US small-cap stocks with lower volatility, making it a suitable option for risk-averse investors. Managed by State Street Global Advisors, the ETF aims to track the SSGA US Small Cap Low Volatility Index, providing downside protection during market downturns. The ETF has a moderate expense ratio, and investors should consider the impact of small-cap stocks' market risk. Its low volatility focus can benefit portfolios seeking stability within the small-cap asset class.

Data Sources:

• SPDR Official Website
• SSGA Official Website
• Financial Data Providers (e.g., Bloomberg, Reuters)
• ETF.com

Disclaimers:

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