Equity: U.S. - Large Cap
With 142 ETFs and over $724.26B in combined AUM, the Equity: U.S. - Large Cap segment provides exposure to the U.S. space with a focus on Large Cap securities.
Year-to-date, the best-performing ETF in the segment is the Powershares S&P 500 Downside Hedged Portfolio (PHDG), with a total return of 8.31%. Meanwhile, the most popular ETF is the SPDR S&P 500 ETF Trust (SPY) with $274.78BB in assets under management.
Investors should take a look at the Vanguard Mega Cap ETF (MGC). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard Mega Cap ETF tracks a market-cap-weighted index that covers 70% of the market capitalization of the US equity market. MGC has an expense ratio of 0.07% and tracks the CRSP US Mega Cap Index.
ETF.com Efficiency Insight
The average efficiency score in the Equity: U.S. - Large Cap segment is 83 out of 100, with the iShares Core S&P 500 ETF(IVV) obtaining the highest rating of 100 out of 100.
Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.40% per year, with the Schwab U.S. Large-Cap ETF (SCHX) having the lowest expense ratio, charging investors 0.03% yearly.
Investors should look for funds with tight tracking, such as the Schwab U.S. Large-Cap ETF (SCHX), with a 12-month median tracking difference of -0.02%.
ETF.com Tradability Insight
The average tradability score in the Equity: U.S. - Large Cap segment is 82 out of 100, with the Vanguard Mega Cap ETF(MGC) obtaining the highest rating of 100 out of 100.
The SPDR S&P 500 ETF Trust (SPY) is the undisputed segment leader when it comes to liquidity. The fund trades 27.04B in daily average volume. Investors should also find ample liquidity in the PowerShares QQQ Trust (QQQ), with $6.38B in daily dollar volume.
Use limit orders to trade funds such as the Elements Spectrum Large Cap US Sector Momentum Index ETN(EEH), due to their double-digit market spreads.
ETF.com Fit Insight
The MSCI USA Large Cap has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.
Investors trying to match a broad market exposure should pay attention to MGC. This fund obtains a high Fit score and investors should capture market-like returns.
Other funds diverge from the market, by nature of their investment mandates; for example, CCOR follows a Active strategy and obtains a low Fit score compared with our neutral benchmark.