Some New ETFs Flying Under the Radar

ETF Trends

From time to time we like to cover what may be considered obscure, if not completely unrecognized ETPs, many of which are relatively new to the marketplace or simply follow a strategy that the public has not yet embraced.

VLU (SPDR S&P 1500 Value Tilt, Expense Ratio 0.35%) debuted in October of last year, and has very little going on in terms of daily volume or asset flows (475 shares traded on an average daily basis with $7 million in assets under management).

Structured as an “all-cap” product, VLU over-weights stocks in the S&P 1500 Index that have relatively low valuations while under-weighting those in the index with relatively high valuations.

Performance since inception, although it is extremely hard to follow this ETF on a point and figure if not a simple candlestick chart, has been encouraging, although one will note that sometimes the ETF will not trade for days on end at times.

A second ETF in the “S&P 1500” all category that was recently re-branded in terms of symbol and name, is ITOT (iShares Core S&P Total U.S. Stock Market, Expense Ratio 0.07%). ITOT as a fund has been around since 2004, and as the name S&P 1500 implies, the index includes all equity components of the S&P 500 (Large), S&P 400 (Mid-Cap), and S&P 600 (Small-Cap) indices.

ITOT has seen a recent pick-up in interest and has a healthy $774 million in assets under management currently, and averages about 115,000 shares traded daily.

Top holdings of ITOT currently rank as the following: AAPL (2.57%), XOM (2.47%), MSFT (1.54%), JNJ (1.47%), and CVX (1.47%) while top weightings in VLU are XOM (3.03%), WMT (2.57%), JPM (2.28%), CVX (2.15%) and T (1.73%).

One can clearly see the crossover between “market-capitalization” as compared to “valuation” in terms of the different weightings throughout the index via the components here. Other non-specialized “All Cap Equity” products that may appeal to investors looking for broad based U.S. equity market exposure include the mammoth VTI (Vanguard Total Stock Market, Expense Ratio 0.05%) which now has more than $30 billion in AUM, as well as IWV (iShares Russell 3000 Index, Expense Ratio 0.21%) with $4.2 billion in AUM.

For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at pweisbruch@streetonefinancial.com.

Street One Financial is an educational/research firm utilizing the Broker Dealer services of GWM Group Inc (RLCC) a FINRA registered Broker/Dealer. All trades are executed through GWM Group (RLCC) and cleared by Fidelity (NFS)DTC number 0226. Street One Financial LLC makes available products and services offered by GWM Group Inc., a registered broker-dealer and Member Securities Investor Protection Corporation (SIPC), Investing in securities involves risks, and there is always the potential of losing money when you invest in securities.

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