SEI Enhanced U.S. Large Cap Value Factor ETF: Solid Value and Quality, But Unimpressive Returns

The SEI Enhanced U.S. Large Cap Value Factor ETF (SEIV) is an actively managed ETF that focuses on inexpensive U.S. equities. It has a solid value and quality mix but unconvincing returns. As a finance expert, I would rate this ETF as a hold due to its performance. The ETF is designed to capture the returns of the U.S. large-cap value factor through a concentrated portfolio of 25 to 35 holdings. It has a low expense ratio of 0.18% and a 3-year track record. However, its performance has been unconvincing, and investors should carefully consider their investment goals and risk tolerance before investing.

The Invesco Large Cap Value ETF (PWV), launched on March 3, 2005, is a passively managed exchange-traded fund (ETF) designed to provide broad exposure to the Large Cap Value segment of the U.S. equity market. With over $1.13 billion in assets, PWV is an average-sized ETF aiming to match the performance of the Dynamic Large Cap Value Intellidex Index before fees and expenses. Large cap companies typically have a market capitalization above $10 billion, offering a stable investment option with lower risk and more consistent cash flows compared to mid and small cap companies.

PWV has an annual operating expense ratio of 0.53%, making it one of the more expensive products in its category. It boasts a 12-month trailing dividend yield of 2.30%. The ETF's sector exposure is heavily weighted towards the Financials sector, with about 31.80% of the portfolio. Energy and Information Technology round out the top three sectors. Notable individual holdings include Qualcomm Inc (QCOM), International Business Machines Corp (IBM), and Exxon Mobil Corp (XOM), which together account for about 34.22% of total assets under management.

In terms of performance, PWV has added roughly 12.11% so far this year and has gained about 16.68% in the last year (as of July 7, 2025). Over the past 52 weeks, it has traded between $52.26 and $62.92. The ETF has a beta of 0.79 and a standard deviation of 14.67% for the trailing three-year period, indicating a medium risk profile. With about 52 holdings, PWV effectively diversifies company-specific risk.

While PWV is an outstanding option for investors seeking exposure to the Large Cap Value segment, it is important to consider alternatives. The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) also track similar indices, with SCHD having $71.37 billion in assets and VTV having $140.79 billion. SCHD has a lower expense ratio of 0.06%, while VTV charges 0.04%. Investors should carefully evaluate these options based on their investment objectives and risk tolerance.

In conclusion, the Invesco Large Cap Value ETF (PWV) is a solid choice for long-term investors seeking broad exposure to the Large Cap Value segment. However, its higher expense ratio compared to some alternatives may impact its overall performance. As always, investors should conduct thorough research and consult with a financial advisor before making investment decisions.

References:
[1] https://finance.yahoo.com/news/invesco-large-cap-value-etf-102006379.html