Equity: U.S. - Large Cap Value

FTA Top Performer Intra-day
Price $48.71
Today’s Change +0.24%(0.50)
4:00pm 03/22/2017
DVP Bottom Performer Intra-day
Price $26.40
Today’s Change -0.13%(-0.49)
10:08am 03/22/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

The fiercely competitive US Large Cap Value segment holds 18 ETFs with a wide variation in fees, liquidity and exposure. Cost is one of the key differentiating factors in the space: ExpenseIWD is a giant not only in AUM, but also in trading volume ratios range from 7 bps to as much as 80 bps. Strategies vary widely here too. Investors can choose funds like MGV that track a broad plain-vanilla index, or funds like GVT that bring an element of active management to the space. Equal-weight and fundamentally weighted portfolios are also an option for those investors seeking alternative strategies. Fees and strategies show some correlation: Plain-vanilla funds tend to charge less; those with fancy strategies tend to charge more.
The strategy and selection universe each fund uses affects how well each captures the US large-cap value market. FTA serves as an example of a fund that uses a quant-based methodology resulting in a portfolio heavily tilted toward midcap equities. Even funds like IWX, SCHV and VOOV that track well-known plain vanilla indexes are still subject to significant industry tilts.
While many value indexes allow style overlap, there are a few that sort stocks in either growth, value or core without any overlapping. RPV distinguishes itself from its peers for having a "pure value" selection and weighting scheme– its index selects and weights stocks base on S&P's proprietary "value scores." The resulting portfolio is the most "pure value" portfolio in our view, making RPV our Analyst Pick of the segment.
Liquidity is also a huge differentiator in the segment. IWD is a giant not only in AUM ($20+ billion), but also in its median daily volume—well over $100 million. This is a stark contrast to about half of segment funds trading below $1 million on a daily basis. To choose between funds tracking the same index, compare Tradability (average spreads, daily volume and block liquidity) and median tracking difference, not just the headline fee. Trading costs matter even to the buy-and-hold crowd for rebalancing, as well as the first and final trades. Lastly, check asset levels before pulling the trigger—not all ETFs here have billions in AUM like IWD and VTV. Fund closure risk looms for GVT, SYV and EZY. (Insight updated 03/22/17)

All Funds (21)

SCHV $3.23 B 3234463895.8 Lowest expense ratio

A 93
E
100
100
T
99
99
F
93
93

IWX $230.23 M 230227150 Pure large-cap

A 91
E
95
95
T
83
83
F
91
91

JKF $390.12 M 390115200 Concentrated in top 10 holdings

A 91
E
96
96
T
90
90
F
91
91

SPYV $362.81 M 362808603.46542 Underweight healthcare and technology

A 89
E
98
98
T
89
89
F
89
89

VOOV $700.01 M 700005000 Midcaps

A 89
E
97
97
T
98
98
F
89
89

IVE $13.94 B 13938096060 Very liquid

A 89
E
99
99
T
100
100
F
89
89

VONV $1.01 B 1005345000 Heavy financial exposure

A 86
E
97
97
T
99
99
F
86
86

IWD $36.94 B 36935929080 Most AUM and liquidity

A 86
E
98
98
T
99
99
F
86
86

PWV $1.25 B 1250952000 Overweight healthcare

A 84
E
89
89
T
99
99
F
84
84

FTA $996.49 M 996486298.662 Tiered-weighting

A 57
E
88
88
T
98
98
F
57
57

RPV $1.05 B 1054034708.216 Pure Value

A 54
E
94
94
T
99
99
F
54
54

VTV $30.47 B 30469129798.1 Cost efficient

A 100
E
99
99
T
100
100
F
100
100

MGV $1.61 B 1613895091.9 Mega-cap focus

A 100
E
98
98
T
97
97
F
100
100

FVAL $30.06 M 30062970 N/A

B 78
E
87
87
T
75
75
F
78
78

EZY $70.95 M 70947100 Medium closure risk

B 73
E
94
94
T
65
65
F
73
73

PXLV $85.69 M 85689600 "pure" value

B 70
E
92
92
T
74
74
F
70
70

SYV $5.93 M 5931659.7 Active, very low AUM

C 81
E
77
77
T
59
59
F
81
81

DVP $88.51 M 88506000 new; trade with care

C 40
E
82
82
T
67
67
F
40
40

SPVU $3.1 M 3103041.0301 fundamental scoring

N/A 0
E
0
-1
T
0
-1
F
0
-1

NULV $6.45 M 6446025 N/A

N/A 0
E
0
-1
T
0
-1
F
0
-1

GVT $5.66 M 5660330.06 High closure risk

D 80
E
70
70
T
65
65
F
80
80

ETF.com Grade as 03/16/17

Equity: U.S. - Large Cap Value

Performance Dispersion
Performance  [as of 03/21/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Large Value-1.17%1.60%2.49%16.13%8.24%11.66%--
A 92.940915SCHV3234463895.8SCHVSchwab U.S. Large-Cap Value ETF-0.94%2.45%3.28%17.68%9.39%12.69%--
A 91.23757IWX230227150IWXiShares Russell Top 200 Value ETF-1.51%1.47%2.68%17.62%8.61%12.42%--
A 90.631353JKF390115200JKFiShares Morningstar Large Cap Value ETF-1.84%0.99%2.08%16.59%8.94%11.69%4.35%
A 88.750235SPYV362808603.46542SPYVSPDR S&P 500 Value ETF-1.96%1.41%2.59%17.26%8.90%12.30%5.58%
A 88.636836VOOV700005000VOOVVanguard S&P 500 Value Index Fund-1.96%1.50%2.49%17.21%8.88%12.34%--
A 88.628929IVE13938096060IVEiShares S&P 500 Value ETF-1.92%1.52%2.47%17.28%8.93%12.35%5.39%
A 85.812121VONV1005345000VONVVanguard Russell 1000 Value Index Fund-1.89%1.47%2.44%17.93%8.59%12.86%--
A 85.767113IWD36935929080IWDiShares Russell 1000 Value ETF-1.90%1.45%2.33%17.97%8.61%12.83%5.64%
A 84.265893PWV1250952000PWVPowerShares Dynamic Large Cap Value Portfolio-2.25%2.40%3.46%18.31%9.11%12.90%6.65%
A 56.842584FTA996486298.662FTAFirst Trust Large Cap Value AlphaDEX Fund-2.79%1.83%3.41%20.14%7.86%12.00%--
A 54.186759RPV1054034708.216RPVGuggenheim S&P 500 Pure Value ETF-4.36%-0.39%1.34%15.91%6.60%14.05%7.39%
A 100VTV30469129798.1VTVVanguard Value Index Fund-1.47%1.57%2.52%18.00%9.86%13.36%6.12%
A 100MGV1613895091.9MGVVanguard Mega Cap Value Index Fund-1.28%1.48%2.38%17.71%9.95%13.24%--
B 77.711239FVAL30062970FVALFidelity Value Factor ETF-2.27%1.78%3.69%--------
B 73.471646EZY70947100EZYWisdomTree LargeCap Value Fund-1.41%1.59%3.26%12.71%7.22%11.17%5.48%
B 70.118118PXLV85689600PXLVPowerShares Russell Top 200 Pure Value Portfolio-2.68%0.84%2.28%23.88%9.59%12.88%--
C 80.606833SYV5931659.7SYVSPDR MFS Systematic Value Equity ETF0.03%1.38%4.26%17.44%10.20%----
C 40.464078DVP88506000DVPDeep Value ETF-3.11%-1.60%1.08%15.95%------
N/A 0SPVU3103041.0301SPVUPowerShares S&P 500 Value Portfolio-3.85%-0.08%1.45%22.70%------
N/A 0NULV6446025NULVNuShares ESG Large-Cap Value ETF-0.74%1.73%1.80%--------
D 80.181795230874GVT5660330.06GVTColumbia Select Large Cap Value-7.83%-8.71%-10.17%-10.28%8.51%7.68%--
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

From an Efficiency point of view, the two primary distinguishing factors within the US Large Cap Value segment are fees and fund closure risk. The expense ratios of the segment's ETFsGVT stands out for high closure risk fall within two tiers. In the first tier are funds that charge between 7 and 20 bps. In the second tier are funds with fees of 25 bps or more. Investors interested in a plain-vanilla, passively-managed fund should look to the cheaper first tier. Unfortunately, those looking for a more specialized strategy will likely find it in the higher tier of expense ratios.
About half of the segment falls within the first tier. SCHV gets the honors for lowest fee, with its expense ratio of 7 bps. Vanguards VTV and MGV follow with 9 bp and 12 bp expense ratios, respectively. VOOV offers exposure to the S&P 500 Value Index for 15 bps, beating out IVE and SPYV—funds that track the same index. Importantly, all funds within the top level also have a low risk of closure, in part because AUM is also heavily concentrated within the first tier—IWD and VTV hold over $35 billion in assets combined.
The second tier of expense ratios within the segment stands in stark contrast from the first. These tend to be funds that offer a unique methodology or strategy in their approach to the space. Columbia's GVT charges 74 bps for an actively-managed take on the segment, while SSgA's SYV charges a less eye-popping but not cheap 60 bps for its fundamental take on value. Both GVT and SYV stand out in another way: Elevated closure risk based on low AUM, poor liquidity and other factors. WisdomTree's EZY also carries elevated closure risk for similar reasons. Buying into a fund that shutters would be particularly annoying in a segment with multibillion AUM peers.
Returning to the top tier funds, fees matter, but small differences in expense ratios shouldn't dominate your decision-making. (Insight updated 03/22/17)

All Funds (21)

99
98.821945
99
98.642561
98
98.381697
98
97.995757
98
97.536229
97
97.389623
97
97.311594
96
95.687463
95
95.444674
94
93.744386
94
93.732558
92
92.312445
89
89.173584
88
88.325648
87
86.56947
82
81.501233
77
76.703952
100
100
N/A
0
N/A
0
70
69.576366304461

ETF.com Grade as 03/16/17

Equity: U.S. - Large Cap Value

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
PWV PowerShares Dynamic Large Cap Value Portfolio 0.57% -0.69% -0.57% -0.83% 20.00% / 39.60% Low 89.173584
NULV NuShares ESG Large-Cap Value ETF 0.35% -- -- -- 20.00% / 39.60% Low 0
PXLV PowerShares Russell Top 200 Pure Value Portfolio 0.39% -0.45% -0.36% -0.50% 20.00% / 39.60% Low 92.312445
DVP Deep Value ETF 0.59% 2.67% 3.56% 2.20% 20.00% / 39.60% Low 81.501233
RPV Guggenheim S&P 500 Pure Value ETF 0.35% -0.39% -0.28% -0.61% 20.00% / 39.60% Low 93.744386
EZY WisdomTree LargeCap Value Fund 0.38% -0.35% -0.31% -0.49% 20.00% / 39.60% Low 93.732558
SCHV Schwab U.S. Large-Cap Value ETF 0.04% -0.10% -0.07% -0.15% 20.00% / 39.60% Low 100
FTA First Trust Large Cap Value AlphaDEX Fund 0.62% -0.59% -0.48% -0.68% 20.00% / 39.60% Low 88.325648
SPVU PowerShares S&P 500 Value Portfolio 0.25% -- -- -- 20.00% / 39.60% High 0
SPYV SPDR S&P 500 Value ETF 0.15% -0.16% -0.07% -0.30% 20.00% / 39.60% Low 97.536229
IVE iShares S&P 500 Value ETF 0.18% -0.19% -0.12% -0.24% 20.00% / 39.60% Low 98.642561
SYV SPDR MFS Systematic Value Equity ETF 0.60% -- -- -- 20.00% / 39.60% High 76.703952
IWD iShares Russell 1000 Value ETF 0.20% -0.20% -0.12% -0.30% 20.00% / 39.60% Low 97.995757
VONV Vanguard Russell 1000 Value Index Fund 0.12% -0.26% -0.08% -0.36% 20.00% / 39.60% Low 97.389623
IWX iShares Russell Top 200 Value ETF 0.20% -0.25% -0.17% -0.39% 20.00% / 39.60% Low 95.444674
VOOV Vanguard S&P 500 Value Index Fund 0.15% -0.13% -0.10% -0.23% 20.00% / 39.60% Low 97.311594
JKF iShares Morningstar Large Cap Value ETF 0.25% -0.30% -0.14% -0.42% 20.00% / 39.60% Low 95.687463
VTV Vanguard Value Index Fund 0.08% -0.05% -0.03% -0.07% 20.00% / 39.60% Low 98.821945
MGV Vanguard Mega Cap Value Index Fund 0.07% -0.03% 0.08% -0.09% 20.00% / 39.60% Low 98.381697
FVAL Fidelity Value Factor ETF 0.29% -- -- -- 20.00% / 39.60% Low 86.56947
GVT Columbia Select Large Cap Value -- -- -- 20.00% / 39.60% Closing 69.576366304461

ETF.com Tradability Insight

In a segment where many plain-vanilla funds track similar or identical indexes at low fees, Tradability matters. The funds land in two distinct groups here. Funds that trade over $1 millionIWD is the undisputed segment leader when it comes to liquidity. in median daily volume occupy the first level, while funds that trade below $1 million on most days fall in the second level. Spreads vary in the segment but tend to stay tighter in the first level, while they can become uncomfortably wide in the second.
IWD is the undisputed segment leader when it comes to liquidity. The fund trades well over $100 million on most days at one-cent spreads, offering deep on-screen liquidity to small and large investors. VTV and IVE are a close second and third, with $50 million in median daily volume and similarly tight spreads. These funds offer ample liquidity and garner high scores to prove it.
Farther down but still in the top tier are funds that trade just a few million each day. Funds like FTA exceed our minimum standards for liquidity, but should still be treated with caution by traders. Bid/ask spreads also tend to be a bit wider.
In the second tier of liquidity, bid/ask spreads range anywhere from 4 bps to 20 bps—not outrageous, but something to be careful of. Small investors will find it difficult to trade funds such as SYV and GVT.
Fortunately, most funds within the segment hold highly liquid baskets—an indication that large investors can get a fair deal when using a liquidity provider. However, even with a liquidity provider, be careful with funds that have particularly poor retail liquidity, since market makers will find it hard to unload their hedges in these ETFs. (Insight updated 03/22/17)

All Funds (21)

100
99.528242
100
99.523943
99
99.26758
99
99.200414
99
98.941365
99
98.90807
99
98.754334
98
97.988937
98
97.701066
97
97.386952
90
89.979825
89
89.191287
83
82.996336
75
74.582079
74
74.089402
67
66.813281
65
64.977249
59
58.84078
N/A
0
N/A
0
65
65.002949367399

ETF.com Grade as 03/16/17

Equity: U.S. - Large Cap Value

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
FTA First Trust Large Cap Value AlphaDEX Fund $3.18 M 0.07% 1.30 100.00% 0.01% 0.02% None 97.988937
VTV Vanguard Value Index Fund $135.76 M 0.01% 58.23 100.00% 0.01% 0.02% None 99.523943
FVAL Fidelity Value Factor ETF $522.9 K 0.20% 0.37 100.00% 0.01% -- None 74.582079
IVE iShares S&P 500 Value ETF $93.82 M 0.01% 18.31 100.00% 0.01% 0.02% None 99.528242
NULV NuShares ESG Large-Cap Value ETF $0 0.29% 0 100.00% 0.01% 0.04% None 0
IWD iShares Russell 1000 Value ETF $224.33 M 0.01% 38.48 100.00% 0.01% 0.03% None 99.26758
IWX iShares Russell Top 200 Value ETF $714.15 K 0.25% 0.30 100.00% 0.01% 0.01% None 82.996336
JKF iShares Morningstar Large Cap Value ETF $902.14 K 0.14% 0.19 100.00% 0.02% 0.01% None 89.979825
MGV Vanguard Mega Cap Value Index Fund $4.65 M 0.08% 2.66 100.00% 0.00% 0.04% None 97.386952
PWV PowerShares Dynamic Large Cap Value Portfolio $4.64 M 0.03% 2.66 100.00% 0.01% 0.03% None 98.941365
PXLV PowerShares Russell Top 200 Pure Value Portfolio $373.08 K 0.20% 0.21 100.00% 0.01% 0.03% None 74.089402
RPV Guggenheim S&P 500 Pure Value ETF $7.72 M 0.02% 2.53 100.00% 0.03% 0.03% None 98.90807
SCHV Schwab U.S. Large-Cap Value ETF $14.37 M 0.03% 5.74 100.00% 0.01% 0.02% None 99.200414
SPVU PowerShares S&P 500 Value Portfolio $22.31 K 0.22% 0.01 100.00% 0.01% 0.03% None 0
SPYV SPDR S&P 500 Value ETF $1.34 M 0.24% 0.24 100.00% 0.01% 0.02% None 89.191287
SYV SPDR MFS Systematic Value Equity ETF $26.44 K 0.29% 0.00 100.00% 0.04% 0.01% None 58.84078
DVP Deep Value ETF $209.82 K 0.29% 0.16 100.00% 0.09% 0.01% None 66.813281
VONV Vanguard Russell 1000 Value Index Fund $3.59 M 0.05% 1.42 100.00% 0.00% 0.02% None 98.754334
EZY WisdomTree LargeCap Value Fund $129.45 K 0.29% 0.04 100.00% 0.02% 0.01% None 64.977249
VOOV Vanguard S&P 500 Value Index Fund $3.3 M 0.08% 1.31 100.00% 0.01% 0.02% None 97.701066
GVT Columbia Select Large Cap Value $11.77 K 0.01 100.00% 0.03% 0.03% None 65.002949367399

ETF.com/ Block Liquidity

IVE
5
4
3
2
1
IWD
5
4
3
2
1
IWX
5
4
3
2
1
JKF
5
4
3
2
1
MGV
5
4
3
2
1
PWV
5
4
3
2
1
PXLV
5
4
3
2
1
RPV
5
4
3
2
1
SCHV
5
4
3
2
1
SPVU
5
4
3
2
1
SPYV
5
4
3
2
1
VONV
5
4
3
2
1
VOOV
5
4
3
2
1
VTV
5
4
3
2
1
FVAL
5
4
3
2
1
EZY
5
4
3
2
1
FTA
5
4
3
2
1
SYV
5
4
3
2
1
NULV
5
4
3
2
1
DVP
5
4
3
2
1
GVT
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

Our Fit analysis performs two roles here. First, it highlights which funds capture the broad market as defined by our segment benchmark. Secondly, it defines the different plays availableEZY, FTA, and PWV differ greatly in their attempt to beat the market to investors interested in the space.
MGV and VTV do an excellent job in capturing what we've defined as the market. Both track value indexes that use similar selection criteria for holdings, with VTV reaching a bit further down the cap spectrum.
Funds like IWX, and SCHV also score well in Fit as a result of their style-focused weighting schemes, which help the funds to mimic the quasi-market-cap weighting of our segment benchmark. These funds have basically identical risk and fundamental characteristics to our benchmark (though it should be noted that none manage to match the benchmark's yield). Distinctions between funds like these tend to be granular. Matching our benchmark is perhaps less to the point here than using the benchmark as a common yardstick.
Three funds track the S&P 500 Value Index, and as a result, exhibit similar characteristics in Fit. VOOV, IVE and SPYV all dip heavily into the midcap space. In similar fashion, IWD and VONV also track the same index—the Russell 1000 Value Index. Both funds dip heavily into smaller firms, with a significant portion of their portfolios exposed to midcap stocks.
Funds like EZY, FTA, and PWV differ greatly from our segment benchmark in their attempt to beat the market. EZY's cumulative earnings screen produces an unexpected and massive bias to consumer cyclicals. Meanwhile, FTA focuses intensely on smaller firms, with 40% of its portfolio exposed to midcaps. Finally, PWV uses a quant-based strategy to pick winners, which leads to some unusual sector tilts. It's worked; the fund has outperformed our benchmark consistently over the last 5 years, while taking on only slightly higher risk, boosting its Fit score.
Returning to the plain-jane funds, the size universe from which large cap value stocks are drawn—top 200, 500 or 1,000 stocks—matters at least as much as the suite of style screens used to pick the stocks. Investors indifferent to these distinctions should at least be mindful of how ETFs from different parent indexes might combine with the rest of their portfolio, with an eye toward unwanted coverage gaps or overlaps.
Lastly, a note about RPV. Our choice of the MSCI USA Large Cap Value Index as the segment benchmark is in keeping with the benchmark selections we've made in other segments. Sticking to one family of indexes allows for an apples-to-apples comparison of funds between segments; for example, the U.S. Large Cap segment, which takes the MSCI USA Large Cap Index as its benchmark. Unfortunately, there is no expert consensus on the best method to measure value and growth characteristics, which means some amount of subjectivity is unavoidable. While MSCI's approach is valid, we favor a pure-style strategy which excludes core stocks at the center of the value-growth spectrum. That said, we feel that RPV provides the best pure-value approach to the segment, which is why it earns a place on our Analyst Pick list for the segment. (Insight updated 03/22/17)

All Funds (21)

93
92.940915
91
91.23757
91
90.631353
89
88.750235
89
88.636836
89
88.628929
86
85.812121
86
85.767113
84
84.265893
81
80.606833
78
77.711239
73
73.471646
70
70.118118
57
56.842584
54
54.186759
40
40.464078
100
100
100
100
N/A
0
N/A
0
80
80.181795230874

ETF.com Grade as 03/16/17

Equity: U.S. - Large Cap Value