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Should Strive 500 ETF (STRV) Be on Your Investing Radar?

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If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Strive 500 ETF (STRV - Free Report) , a passively managed exchange traded fund launched on 09/15/2022.

The fund is sponsored by Strive Etfs. It has amassed assets over $720.41 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

Large cap companies usually 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.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.05%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.11%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 32.20% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA - Free Report) accounts for about 6.76% of total assets, followed by Apple Inc (AAPL - Free Report) and Microsoft Corp (MSFT - Free Report) .

The top 10 holdings account for about 34.26% of total assets under management.

Performance and Risk

STRV seeks to match the performance of the SOLACTIVE GBS UNITED STATES 500 INDEX before fees and expenses. The Solactive GBS United States 500 Index is a float-adjusted, capitalization weighted index consisting of equity securities of the 500 largest companies in the U.S. stock market.

The ETF has added about 26.23% so far this year and was up about 32.95% in the last one year (as of 11/22/2024). In the past 52-week period, it has traded between $29.20 and $38.58.

The ETF has a beta of 0.99 and standard deviation of 15.07% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.

Alternatives

Strive 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, STRV is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard S&P 500 ETF (VOO - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While Vanguard S&P 500 ETF has $562.73 billion in assets, SPDR S&P 500 ETF has $631.96 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.

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