Should State Street SPDR Russell 1000 Yield Focus ETF (ONEY) Be on Your Investing Radar?

Launched on December 2, 2015, the State Street SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Value segment of the US equity market.

The fund is sponsored by State Street Investment Management. It has amassed assets over $861.40 million, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap Value

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.

Value stocks have lower than average price-to-earnings and price-to-book ratios. They also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.2%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 2.84%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector -- about 14.3% of the portfolio. Consumer Staples and Financials round out the top three.

Looking at individual holdings, United Parcel Service Cl B (UPS) accounts for about 2.53% of total assets, followed by Target Corp (TGT) and Slb Ltd (SLB).

The top 10 holdings account for about 14.72% of total assets under management.

Performance and Risk

ONEY seeks to match the performance of the Russell 1000 Yield Focused Factor Index before fees and expenses. The Russell 1000 Yield 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 high yield characteristics.

The ETF has gained about 11.06% so far this year and it's up approximately 16.41% in the last one year (as of 03/02/2026). In the past 52-week period, it has traded between $95.52 and $126.60.

The ETF has a beta of 0.90 and standard deviation of 14.82% for the trailing three-year period. With about 303 holdings, it effectively diversifies company-specific risk.

Alternatives

State Street SPDR Russell 1000 Yield 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, ONEY is a reasonable option for those seeking exposure to the Style Box - Large Cap Value area of the market. Investors might also want to consider some other ETF options in the space.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $85.42 billion in assets, Vanguard Value Index Fund ETF Shares has $171.03 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

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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State Street SPDR Russell 1000 Yield Focus ETF (ONEY): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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