Equity: U.S. - Large Cap Value

DVP Top Performer Intra-day
Price $27.20
Today’s Change +0.09%(0.33)
3:59pm 02/17/2017
SYV Bottom Performer Intra-day
Price $58.82
Today’s Change -0.31%(-0.52)
1:55pm 02/17/2017
  • 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 02/17/17)

All Funds (21)

SCHV $3.14 B 3140784453.4 Lowest expense ratio

A 92
E
100
100
T
99
99
F
92
92

IWX $223.95 M 223952840 Pure large-cap

A 91
E
95
95
T
84
84
F
91
91

JKF $384.0 M 384002410 Concentrated in top 10 holdings

A 91
E
96
96
T
93
93
F
91
91

SPYV $364.12 M 364115487.81538 Underweight healthcare and technology

A 88
E
98
98
T
90
90
F
88
88

IVE $13.78 B 13780610500 Very liquid

A 88
E
99
99
T
100
100
F
88
88

VOOV $673.65 M 673645000 Midcaps

A 87
E
97
97
T
98
98
F
87
87

VONV $965.74 M 965739750 Heavy financial exposure

A 85
E
97
97
T
99
99
F
85
85

IWD $36.7 B 36695732900 Most AUM and liquidity

A 85
E
98
98
T
99
99
F
85
85

PWV $1.21 B 1210703250 Overweight healthcare

A 84
E
89
89
T
99
99
F
84
84

FTA $996.84 M 996840748.942 Tiered-weighting

A 56
E
88
88
T
98
98
F
56
56

RPV $1.05 B 1046160216.532 Pure Value

A 50
E
94
94
T
99
99
F
50
50

VTV $29.27 B 29267035956.6 Cost efficient

A 100
E
99
99
T
100
100
F
100
100

MGV $1.59 B 1592281616.52 Mega-cap focus

A 100
E
98
98
T
97
97
F
100
100

EZY $73.94 M 73942050 Medium closure risk

B 75
E
94
94
T
69
69
F
75
75

PXLV $79.04 M 79041600 "pure" value

B 70
E
92
92
T
72
72
F
70
70

SYV $5.91 M 5908775.8 Active, very low AUM

C 79
E
76
76
T
54
54
F
79
79

DVP $88.47 M 88465000 new; trade with care

C 36
E
81
81
T
65
65
F
36
36

SPVU $1.57 M 1570881.417 fundamental scoring

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

FVAL $25.9 M 25900290 N/A

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

NULV $6.42 M 6419950 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 02/09/17

Equity: U.S. - Large Cap Value

Performance Dispersion
Performance  [as of 02/16/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Large Value2.61%7.50%3.03%--9.15%12.49%--
A 92.404044SCHV3140784453.4SCHVSchwab U.S. Large-Cap Value ETF2.94%7.99%3.49%27.63%10.22%13.55%--
A 91.1685IWX223952840IWXiShares Russell Top 200 Value ETF2.55%7.74%3.51%28.72%9.60%13.43%--
A 91.029439JKF384002410JKFiShares Morningstar Large Cap Value ETF2.93%8.39%3.27%27.75%10.03%12.62%4.35%
A 87.967809SPYV364115487.81538SPYVSPDR S&P 500 Value ETF2.88%8.15%3.91%29.55%10.22%13.37%5.60%
A 87.779102IVE13780610500IVEiShares S&P 500 Value ETF2.83%8.13%3.64%29.54%10.16%13.38%5.39%
A 87.218644VOOV673645000VOOVVanguard S&P 500 Value Index Fund2.78%8.14%3.68%29.41%10.19%13.42%--
A 84.558644VONV965739750VONVVanguard Russell 1000 Value Index Fund2.79%8.00%3.61%30.68%9.87%13.78%--
A 84.500162IWD36695732900IWDiShares Russell 1000 Value ETF2.82%8.01%3.53%30.80%9.85%13.74%5.63%
A 84.29685PWV1210703250PWVPowerShares Dynamic Large Cap Value Portfolio3.93%8.81%5.01%31.41%10.63%13.74%6.58%
A 56.168147FTA996840748.942FTAFirst Trust Large Cap Value AlphaDEX Fund4.11%9.59%5.31%39.51%9.64%12.77%--
A 50.380691RPV1046160216.532RPVGuggenheim S&P 500 Pure Value ETF3.48%8.78%4.95%37.97%9.45%15.52%7.66%
A 100VTV29267035956.6VTVVanguard Value Index Fund2.83%7.96%3.43%29.12%11.08%14.22%6.09%
A 100MGV1592281616.52MGVVanguard Mega Cap Value Index Fund2.49%7.70%3.04%27.77%11.04%14.13%--
B 75.105451EZY73942050EZYWisdomTree LargeCap Value Fund3.24%7.96%3.97%24.04%8.48%11.77%--
B 69.602277PXLV79041600PXLVPowerShares Russell Top 200 Pure Value Portfolio2.73%9.13%4.07%38.48%11.07%14.22%--
C 78.50989SYV5908775.8SYVSPDR MFS Systematic Value Equity ETF3.42%4.38%3.76%29.81%10.62%----
C 35.803231DVP88465000DVPDeep Value ETF0.04%7.54%2.88%36.68%------
N/A 0SPVU1570881.417SPVUPowerShares S&P 500 Value Portfolio3.58%9.44%4.70%42.04%------
N/A 0FVAL25900290FVALFidelity Value Factor ETF3.56%9.18%5.33%--------
N/A 0NULV6419950NULVNuShares ESG Large-Cap Value ETF2.64%--2.56%--------
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 02/17/17)

All Funds (21)

99
98.76891
99
98.656154
98
98.351121
98
97.983124
98
97.575026
97
97.403282
97
97.306961
96
95.712484
95
95.465797
94
94.203587
94
93.693247
92
92.321925
89
89.197613
88
88.355592
81
81.264746
76
76.166828
100
100
N/A
0
N/A
0
N/A
0
70
69.576366304461

ETF.com Grade as 02/09/17

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% -0.66% -0.56% -0.83% 20.00% / 39.60% Low 89.197613
NULV NuShares ESG Large-Cap Value ETF 0.35% -- -- -- -- / -- Low 0
PXLV PowerShares Russell Top 200 Pure Value Portfolio 0.39% -0.45% -0.36% -0.50% 20.00% / 39.60% Low 92.321925
DVP Deep Value ETF 0.59% 2.64% 3.56% 2.17% 20.00% / 39.60% Low 81.264746
RPV Guggenheim S&P 500 Pure Value ETF 0.35% -0.38% -0.20% -0.61% 20.00% / 39.60% Low 94.203587
EZY WisdomTree LargeCap Value Fund 0.38% -0.34% -0.31% -0.49% 20.00% / 39.60% Low 93.693247
SCHV Schwab U.S. Large-Cap Value ETF 0.04% -0.10% -0.06% -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 88.355592
SPVU PowerShares S&P 500 Value Portfolio 0.25% -- -- -- 20.00% / 39.60% High 0
SPYV SPDR S&P 500 Value ETF 0.15% -0.15% -0.04% -0.30% 20.00% / 39.60% Low 97.575026
IVE iShares S&P 500 Value ETF 0.18% -0.18% -0.11% -0.24% 20.00% / 39.60% Low 98.656154
SYV SPDR MFS Systematic Value Equity ETF 0.60% -- -- -- 20.00% / 39.60% High 76.166828
IWD iShares Russell 1000 Value ETF 0.20% -0.19% -0.11% -0.30% 20.00% / 39.60% Low 97.983124
VONV Vanguard Russell 1000 Value Index Fund 0.12% -0.25% -0.07% -0.36% 20.00% / 39.60% Low 97.403282
IWX iShares Russell Top 200 Value ETF 0.20% -0.23% -0.14% -0.39% 20.00% / 39.60% Low 95.465797
VOOV Vanguard S&P 500 Value Index Fund 0.15% -0.13% -0.08% -0.23% 20.00% / 39.60% Low 97.306961
JKF iShares Morningstar Large Cap Value ETF 0.25% -0.28% -0.11% -0.42% 20.00% / 39.60% Low 95.712484
VTV Vanguard Value Index Fund 0.08% -0.05% -0.02% -0.07% 20.00% / 39.60% Low 98.76891
MGV Vanguard Mega Cap Value Index Fund 0.07% -0.03% 0.08% -0.09% 20.00% / 39.60% Low 98.351121
FVAL Fidelity Value Factor ETF 0.29% -- -- -- -- / -- N/A 0
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 02/17/17)

All Funds (21)

100
99.513893
100
99.505507
99
99.286349
99
99.24344
99
98.862476
99
98.784476
99
98.690635
98
97.956849
98
97.580555
97
97.088176
93
92.651017
90
90.125114
84
83.817491
72
71.851003
69
68.575109
65
65.406699
54
54.14062
N/A
0
N/A
0
N/A
0
65
65.002949367399

ETF.com Grade as 02/09/17

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
RPV Guggenheim S&P 500 Pure Value ETF $9.63 M 0.02% 3.24 100.00% 0.03% 0.03% None 98.862476
SCHV Schwab U.S. Large-Cap Value ETF $14.37 M 0.03% 5.90 100.00% 0.01% 0.02% None 99.286349
SPVU PowerShares S&P 500 Value Portfolio $18.68 K 0.14% 0.01 100.00% 0.01% 0.03% None 0
SPYV SPDR S&P 500 Value ETF $1.52 M 0.22% 0.27 100.00% 0.01% 0.02% None 90.125114
SYV SPDR MFS Systematic Value Equity ETF $27.18 K 0.56% 0.00 100.00% 0.04% 0.01% None 54.14062
DVP Deep Value ETF $243.86 K 0.37% 0.18 100.00% 0.08% 0.01% None 65.406699
VONV Vanguard Russell 1000 Value Index Fund $3.41 M 0.05% 1.38 100.00% 0.00% 0.02% None 98.690635
EZY WisdomTree LargeCap Value Fund $268.05 K 0.31% 0.08 100.00% 0.02% 0.01% None 68.575109
VOOV Vanguard S&P 500 Value Index Fund $3.68 M 0.09% 1.46 100.00% 0.01% 0.02% None 97.580555
FTA First Trust Large Cap Value AlphaDEX Fund $3.47 M 0.07% 1.46 100.00% 0.02% 0.02% None 97.956849
VTV Vanguard Value Index Fund $130.91 M 0.01% 55.80 100.00% 0.01% 0.02% None 99.505507
FVAL Fidelity Value Factor ETF $468.83 K 0.16% 0.33 100.00% 0.01% -- None 0
IVE iShares S&P 500 Value ETF $100.65 M 0.01% 19.73 100.00% 0.01% 0.02% None 99.513893
NULV NuShares ESG Large-Cap Value ETF $0 0.28% 0.00 100.00% 0.01% 0.04% None 0
IWD iShares Russell 1000 Value ETF $227.86 M 0.01% 39.66 100.00% 0.01% 0.03% None 99.24344
IWX iShares Russell Top 200 Value ETF $716.33 K 0.25% 0.30 100.00% 0.01% 0.01% None 83.817491
JKF iShares Morningstar Large Cap Value ETF $1.41 M 0.14% 0.30 100.00% 0.02% 0.01% None 92.651017
MGV Vanguard Mega Cap Value Index Fund $5.0 M 0.09% 2.98 100.00% 0.00% 0.04% None 97.088176
PWV PowerShares Dynamic Large Cap Value Portfolio $4.52 M 0.04% 2.66 100.00% 0.01% 0.03% None 98.784476
PXLV PowerShares Russell Top 200 Pure Value Portfolio $357.26 K 0.20% 0.20 100.00% 0.01% 0.03% None 71.851003
GVT Columbia Select Large Cap Value $11.77 K 0.01 100.00% 0.03% 0.03% None 65.002949367399

ETF.com/ Block Liquidity

DVP
5
4
3
2
1
EZY
5
4
3
2
1
FTA
5
4
3
2
1
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
SYV
5
4
3
2
1
NULV
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 02/17/17)

All Funds (21)

92
92.404044
91
91.1685
91
91.029439
88
87.967809
88
87.779102
87
87.218644
85
84.558644
85
84.500162
84
84.29685
79
78.50989
75
75.105451
70
69.602277
56
56.168147
50
50.380691
36
35.803231
100
100
100
100
N/A
0
N/A
0
N/A
0
80
80.181795230874

ETF.com Grade as 02/09/17

Equity: U.S. - Large Cap Value