Should State Street SPDR Russell 1000 Low Volatility Focus ETF (ONEV) Be on Your Investing Radar?

If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the State Street SPDR Russell 1000 Low Volatility Focus ETF (ONEV), a passively managed exchange traded fund launched on December 2, 2015.

The fund is sponsored by State Street Investment Management. It has amassed assets over $527.71 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. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

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

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%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 2.25%.

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 Industrials sector -- about 21.2% of the portfolio. Healthcare and Financials round out the top three.

Looking at individual holdings, Cardinal Health Inc (CAH) accounts for about 1.79% of total assets, followed by Cencora Inc (COR) and Mckesson Corp (MCK).

The top 10 holdings account for about 9.63% 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 0.05% so far this year and is up roughly 8.21% in the last one year (as of 03/24/2026). In the past 52-week period, it has traded between $114.16 and $143.00.

The ETF has a beta of 0.86 and standard deviation of 12.49% for the trailing three-year period. With about 445 holdings, it effectively diversifies company-specific risk.

Alternatives

State Street 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 sufficient 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) and the Vanguard 500 Index Fund ETF Shares (VOO) track a similar index. While iShares Core S&P 500 ETF has $684.24 billion in assets, Vanguard 500 Index Fund ETF Shares has $838.19 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

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.

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State Street SPDR Russell 1000 Low Volatility Focus ETF (ONEV): ETF Research Reports

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

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