Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

New SPDRs Debut: Positive Momentum And Low Valuation

Mon, Oct 29, 8:25 AM ET, by Michael Johnston

State Street became the latest ETF firm to launch factor-based equity ETFs this week, rolling out a pair of funds that will segment the universe of large, mid, and small U.S. cap stocks based on valuation and momentum factors. The two new ETFs will segment the S&P 1500 Index, a broad-based benchmark that includes substantially all of the publicly-traded U.S. market capitalization. The new factor ETFs are highlighted below [for updates on all new ETFs, sign up for the free ETFdb newsletter]:

  • SPDR S&P 1500 Value Tilt ETF (VLU): This ETF will apply an alternative weighting methodology to the S&P 1500 Index, seeking to give the largest weightings to stocks that exhibit cheap valuations. In determining valuation, the index will consider price-to-earnings, price-to-cash flow, price-to-sales, price-to-book value, and price-to-dividends. Components deemed to have the “cheapest” valuation will be overweighted relative to stocks with loftier valuations.
  • SPDR S&P 1500 Momentum Tilt ETF (MMTM): This ETF will use an alternative weighting methodology to shift assets towards stocks exhibiting positive momentum factors, as measured by performance over the 11 months ending one month prior to the rebalancing date.

Under The Hoods

MMTM Index
Dividend Yield 2.04%
Forward P/E 15x
Price-to-Book 2.6x

As of September 30, the top holdings in MMTM included Apple (AAPL, 8.4%), Exxon Mobil (XOM, 2.8%), and AT&T (T, 2.3%). Several other blue chips also made the top ten, including GE, Pfizer, and Microsoft. The fund gives its largest sector weighting to technology, which is not surprising given the red hot performance from tech stocks so far in 2012. The lowest weights are to utilities (4%) and materials (3%).

[See the MMTM fact sheet]

VLU Index
Dividend Yield 2.14%
Forward P/E 13x
Price-to-Book 1.7x

As of September 30, the top holdings in VLU exhibited a bit of overlap with MMTM; Exxon (3.3%), AT&T (2.3%), and Apple (2.3%) were the top holdings. While that may seem strange, it’s a result of the methodology employed; the overlap between these two products will be almost perfect in terms of the individual stocks held, with the difference coming in the weightings assigned to each. For example, AAPL receives a much smaller weighting in VLU than it does in MMTM.

[see the VLU fact sheet]

Factor ETF Investing In Focus

There are now several ETFs that offer exposure to so-called “factor investing” styles — approaches that involve segmenting a broad, cap-weighted index based on certain fundamental factors. Many of these ETFs have become quite popular; low volatility ETFs in particular have caught on with investors looking to scale back risk while still keeping a fair amount of skin in the game.

VLU and MMTM will be somewhat unique in that it will simply tilt exposure towards certain stocks and away from others, as opposed to picking and choosing which components make the cut. Other forms of factor investing include:

Both new ETFs will charge an annual expense ratio of, putting them below the average for the All Cap Equities ETFdb Category. The cheapest ETF in that category, Schwab’s U.S. Broad Market ETF (SCHB, A), charges just 0.04%.

Disclosure: No positions at time of writing.


SDI Glossary: "Beta" Definition
SDI Glossary: "price" Definition
SDI Glossary: "Dividend" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Yield" Definition
This Article's Word Cloud:   AAPL   Apple   Beta   Book   Dividend   ETFdb   ETFs   Exxon   Forward   Index   MMTM   Price   SPDR   September   This   Tilt   Volatility   Yield   adsbygoogle   alternative   based   below   certain   cheapest   exposure   fact   factor   factors   from   have   holdings   index   investing   largest   methodology   momentum   overlap   price   segment   sheet   stocks   that   these   towards   valuation   weighting   weightings   which   will   with

| More

EMB Crosses Above Key Moving Average Level
Fri, Mar 24, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the iShares J.P. Morgan USD Emerging Markets Bond ETF ...

Zoetis Moves Up In Analyst Rankings, Passing Alphabet
Fri, Mar 24, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

VNQ, PSA, PLD, EQIX: ETF Inflow Alert
Fri, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VNQ, PSA, PLD, EQIX Exchange traded funds (ETFs) trade just ...

EMB: Large Inflows Detected at ETF
Fri, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EMB Exchange traded funds (ETFs) trade just like stocks, but ...

IAU: Large Inflows Detected at ETF
Fri, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IAU Exchange traded funds (ETFs) trade just like stocks, but ...

IWF, BA, CELG, BMY: ETF Inflow Alert
Fri, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWF, BA, CELG, BMY Exchange traded funds (ETFs) trade just ...

WisdomTree Japan Hedged Equity Fund Experiences Big Outflow
Fri, Mar 24, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DXJ Exchange traded funds (ETFs) trade just like stocks, but ...

DIA, TRV, UTX, AXP: ETF Outflow Alert
Fri, Mar 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: DIA, TRV, UTX, AXP Exchange traded funds (ETFs) trade just ...

VXF, TSLA, LBTYA, LVS: Large Outflows Detected at ETF
Fri, Mar 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VXF, TSLA, LBTYA, LVS Exchange traded funds (ETFs) trade just ...

IYF, CB, MS, AIG: ETF Outflow Alert
Fri, Mar 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IYF, CB, MS, AIG Exchange traded funds (ETFs) trade just ...

VBK, SIVB, FANG, CDNS: Large Outflows Detected at ETF
Fri, Mar 24, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VBK, SIVB, FANG, CDNS Exchange traded funds (ETFs) trade just ...

UBSI Crosses Above Average Analyst Target
Fri, Mar 24, 10:24 AM ET, by ETF Channel

In recent trading, shares of United Bankshares Inc (UBSI) have crossed above the average analyst ...

BCOR Crosses Above Average Analyst Target
Fri, Mar 24, 10:24 AM ET, by ETF Channel

In recent trading, shares of Blucora, Inc. (BCOR) have crossed above the average analyst 12-month ...

Implied XPH Analyst Target Price: $53
Fri, Mar 24, 10:24 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Wolverine World Wide Reaches Analyst Target Price
Fri, Mar 24, 10:14 AM ET, by ETF Channel

In recent trading, shares of Wolverine World Wide, Inc. (WWW) have crossed above the average ...

Implied PXJ Analyst Target Price: $14
Fri, Mar 24, 10:14 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Atmos Energy Reaches Analyst Target Price
Fri, Mar 24, 10:14 AM ET, by ETF Channel

In recent trading, shares of Atmos Energy Corp. (ATO) have crossed above the average analyst ...

WNC Crosses Above Average Analyst Target
Fri, Mar 24, 10:14 AM ET, by ETF Channel

In recent trading, shares of Wabash National Corp. (WNC) have crossed above the average analyst ...

Hyster-Yale Materials Handling Reaches Analyst Target Price
Fri, Mar 24, 10:14 AM ET, by ETF Channel

In recent trading, shares of Hyster-Yale Materials Handling Inc (HY) have crossed above the average ...

REZ Makes Bullish Cross Above Critical Moving Average
Thu, Mar 23, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the iShares Residential Real Estate Capped ETF (REZ) crossed ...

FTSL Crosses Below Key Moving Average Level
Thu, Mar 23, 11:24 AM ET, by ETF Channel

In trading on Thursday, shares of the First Trust Senior Loan Fund ETF (FTSL) crossed ...

VTI, VIS, HON, AVGO: ETF Outflow Alert
Thu, Mar 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VTI, VIS, HON, AVGO Exchange traded funds (ETFs) trade just ...

XOP, RICE, CPE, EGN: Large Inflows Detected at ETF
Thu, Mar 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XOP, RICE, CPE, EGN Exchange traded funds (ETFs) trade just ...

Experiences Big Outflow
Thu, Mar 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XME, HL, RGLD, CDE Exchange traded funds (ETFs) trade just ...

IYW, AMAT, YHOO, HPE: Large Outflows Detected at ETF
Thu, Mar 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IYW, AMAT, YHOO, HPE Exchange traded funds (ETFs) trade just ...

VBR, HII, TRGP, CDW: Large Outflows Detected at ETF
Thu, Mar 23, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VBR, HII, TRGP, CDW Exchange traded funds (ETFs) trade just ...

VDE's Holdings Imply 20% Gain Potential
Thu, Mar 23, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Add Up The Parts: FNI Could Be Worth $35
Thu, Mar 23, 9:44 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

We Did The Math ZMLP Can Go To $20
Thu, Mar 23, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

The Math Shows PXSG Can Go To $31
Thu, Mar 23, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

Implied ACTX Analyst Target Price: $16
Thu, Mar 23, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

IHE's Underlying Holdings Could Mean 24% Gain Potential
Thu, Mar 23, 9:34 AM ET, by ETF Channel

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, ...

PPL Crosses Above Average Analyst Target
Thu, Mar 23, 9:34 AM ET, by ETF Channel

In recent trading, shares of PPL Corp (PPL) have crossed above the average analyst 12-month ...

T-Mobile US Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of T-Mobile US Inc (TMUS) have crossed above the average analyst ...

Autoliv Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of Autoliv Inc. (ALV) have crossed above the average analyst 12-month ...

Platform Specialty Products Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of Platform Specialty Products Corp (PAH) have crossed above the average ...

LATAM Airlines Group Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of LATAM Airlines Group SA (LFL) have crossed above the average ...

Alliant Energy Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of Alliant Energy Corp (LNT) have crossed above the average analyst ...

RH Reaches Analyst Target Price
Thu, Mar 23, 9:24 AM ET, by ETF Channel

In recent trading, shares of RH (RH) have crossed above the average analyst 12-month target ...

The NBLX Paradox: Analysts Bullish But Forecast -3.8% Fall
Thu, Mar 23, 9:24 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

XES, WFT, CLB, PTEN: ETF Outflow Alert
Wed, Mar 22, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: XES, WFT, CLB, PTEN Exchange traded funds (ETFs) trade just ...

VO, FISV, APH, ROP: ETF Inflow Alert
Wed, Mar 22, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: VO, FISV, APH, ROP Exchange traded funds (ETFs) trade just ...

HDV, RAI, KMB, AEP: ETF Inflow Alert
Wed, Mar 22, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: HDV, RAI, KMB, AEP Exchange traded funds (ETFs) trade just ...

SPDR EURO STOXX 50 ETF Experiences Big Inflow
Wed, Mar 22, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: FEZ Exchange traded funds (ETFs) trade just like stocks, but ...

IEI: ETF Outflow Alert
Wed, Mar 22, 12:14 PM ET, by ETF Channel

Symbols mentioned in this story: IEI Exchange traded funds (ETFs) trade just like stocks, but ...

MLPA Crosses Critical Technical Indicator
Wed, Mar 22, 11:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the MLP ETF (MLPA) entered into oversold territory, changing ...

PSCF Crowded With Sellers
Wed, Mar 22, 11:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares S&P SmallCap Financials Portfolio ETF (PSCF) entered ...

USMV, BDX, SYK, PAYX: ETF Outflow Alert
Wed, Mar 22, 11:54 AM ET, by ETF Channel

Symbols mentioned in this story: USMV, BDX, SYK, PAYX Exchange traded funds (ETFs) trade just ...

12.3% of VTWV Holdings Seeing Recent Insider Buys
Wed, Mar 22, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Vanguard Russell 2000 Value ETF (VTWV) ...

The FII Paradox: Analysts Bearish But Forecast 11.84% Gains
Wed, Mar 22, 9:14 AM ET, by ETF Channel

Analyst ratings can sometimes be complicated, and we here at ETF Channel have noticed a ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

New SPDRs Debut: Positive Momentum And Low Valuation | Self Directed Investor | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.