SPYV S&P500 Value ETF - My Tactical Bet In Times of Market Volatility
πππThe current geopolitical conflicts in the Middle East and Ukraine is very much the current source of volatility in the markets. The markets were also disappointed with Feds Chairman Jerome Powell's comments today that interest rates will have to stay higher for longer.
In the midst of this volatility $SPDR Portfolio S&P 500 Value ETF(SPYV)$ is my tactical bet to ride out this volatility. SPYV invests in S&P 500 stocks with a focus on value stocks. Value stocks relate to companies that are well established but are undervalued by the market. In contrast growth stocks have higher volatity with emphasis on innovation and technological advances.
The Top 10 holdings include Berkshire Hathaway, $JPMorgan Chase(JPM)$
The Top 10 weightage is 18%. Total number of holdings is 445. The expense ratio is a low 0.04%. Assets Under Management is USD 20.85 billion. The Fund Manager is State Street Global, the 4th largest asset manager globally with total assets under management of USD 3.5 Trillion.
$Berkshire Hathaway(BRK.B)$ is the Top holding of SPYV. Its Chairman and CEO is Warren Buffett. He has successfully steered Berkshire Hathaway to be the 7th most valuable company in the S&P500 Index.
JP Morgan is the Top US Bank followed by Bank of America as the 2nd largest US bank. The other 2 largest US banks $Wells Fargo(WFC)$
Exxon Mobil and Chevron are the 2 largest US Energy companies. With the current geopolitical conflicts, oil prices have been on the rise. Exxon and Chevron have greatly benefited.
Johnson & Johnson and Procter & Gamble are 2 Dividends Kings, having paid increasing dividends for more than 50 years. These 2 companies are in the Consumer Defensive Sector which is resilient in all economic conditions.
SPYV pays distributions every 3 months. The current distribution yield is 1.84%.
Performance wise, SPYV is currently down 0.4% today and in the past 5 days, it has dropped 2.9%. It is currently up 1% year todate and in 2023, SPYV has risen by 15%.
I like SPYV as it offers me great value for money. It is certainly well diversified with 445 stocks. Best of all it does the heavy lifting for r me as SPYV selects the best value stocks based on strict criteria of 4 consecutive quarters of profitability, including the most recent quarter. SPYV also screens the stocks based on their fundamental value characteristics and liquidity criteria.
SPYV is a slow and steady kind of ETF, but since its inception in the year 2000, it has grown 187%! That is the magic of compounding at its best. And that is why SPYV is my tactical bet especially in times of volatility like now.
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I always consider your articles well thoughout and great! Thanks!