If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the SPDR Russell 1000 Low Volatility Focus ETF (ONEV Quick QuoteONEV - Free Report) , a passively managed exchange traded fund launched on 12/02/2015.

The fund is sponsored by State Street Global Advisors. It has amassed assets over $565.33 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.20%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.65%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 18% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Cognizant Technology Solutions Corporation Class A (CTSH Quick QuoteCTSH - Free Report) accounts for about 1.18% of total assets, followed by Progressive Corporation (PGR Quick QuotePGR - Free Report) and Dollar General Corporation (DG Quick QuoteDG - Free Report) .

The top 10 holdings account for about 6.98% of total assets under management.

Performance and Risk

ONEV seeks to match the performance of the Russell 1000 Low Volatility Focused Factor Index before fees and expenses. The Russell 1000 Low Volatility Focused Factor Index reflects the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors high value, high quality, and low size characteristics, with a focus factor comprising low volatility characteristics.

The ETF has gained about 20.86% so far this year and is up roughly 40.47% in the last one year (as of 09/28/2021). In the past 52-week period, it has traded between $77.31 and $109.80.

The ETF has a beta of 1.01 and standard deviation of 23.48% for the trailing three-year period. With about 439 holdings, it effectively diversifies company-specific risk.

Alternatives

SPDR Russell 1000 Low Volatility Focus ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, ONEV is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV Quick QuoteIVV - Free Report) and the SPDR S&P 500 ETF (SPY Quick QuoteSPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $300.33 billion in assets, SPDR S&P 500 ETF has $399.81 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.