Is State Street SPDR Russell 1000 Yield Focus ETF (ONEY) a Strong ETF Right Now?

Launched on 12/02/2015, the State Street SPDR Russell 1000 Yield Focus ETF (ONEY) is a smart beta exchange traded fund offering broad exposure to the Style Box - Large Cap Value category of the market.What Are Smart Beta ETFs?Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.Fund Sponsor & IndexManaged by State Street Investment Management, ONEY has amassed assets over $779.96 million, making it one of the average sized ETFs in the Style Box - Large Cap Value. 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.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.With one of the cheaper products in the space, this ETF has annual operating expenses of 0.20%.ONEY's 12-month trailing dividend yield is 2.88%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector - about 13.4% of the portfolio. Energy and Consumer Staples round out the top three.Taking into account individual holdings, United Parcel Service Cl B (UPS) accounts for about 2.21% of the fund's total assets, followed by Eog Resources Inc (EOG) and Target Corp (TGT).Its top 10 holdings account for approximately 15.1% of ONEY's total assets under management.Performance and RiskSo far this year, ONEY has added roughly 11.55%, and was up about 21.39% in the last one year (as of 05/22/2026). During this past 52-week period, the fund has traded between $106.11 and $126.80.The ETF has a beta of 0.84 and standard deviation of 14.35% for the trailing three-year period. With about 301 holdings, it effectively diversifies company-specific risk .AlternativesState Street SPDR Russell 1000 Yield Focus ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Value segment of the market. However, there are other ETFs in the space which investors could consider.Schwab U.S. Dividend Equity ETF (SCHD) tracks Dow Jones U.S. Dividend 100 Index and the Vanguard Value Index Fund ETF Shares (VTV) tracks CRSP U.S. Large Cap Value Index. Schwab U.S. Dividend Equity ETF has $92.99 billion in assets, Vanguard Value Index Fund ETF Shares has $175.13 billion. SCHD has an expense ratio of 0.06% and VTV changes 0.03%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap ValueBottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks