Equity: U.S. - Large Cap Value

DVP Top Performer Intra-day
Price $27.10
Today’s Change +0.15%(0.56)
3:59pm 01/13/2017
SYV Bottom Performer Intra-day
Price $57.17
Today’s Change -0.29%(-0.50)
2:08pm 01/13/2017
  • 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 01/16/17)

All Funds (21)

IWX $208.13 M 208130560 Pure large-cap

A 92
E
95
95
T
79
79
F
92
92

JKF $358.36 M 358355960 Concentrated in top 10 holdings

A 90
E
96
96
T
91
91
F
90
90

IVE $12.96 B 12957657600 Very liquid

A 88
E
99
99
T
100
100
F
88
88

IWD $34.77 B 34771412340 Most AUM and liquidity

A 86
E
98
98
T
99
99
F
86
86

FTA $953.9 M 953901094.68 Tiered-weighting

A 58
E
88
88
T
98
98
F
58
58

EZY $71.42 M 71417010 Medium closure risk

B 65
E
94
94
T
72
72
F
65
65

DVP $84.89 M 84892500 new; trade with care

C 36
E
81
81
T
49
49
F
36
36

FVAL $15.23 M 15225980 N/A

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

SCHV $2.93 B 2930382886.2 Lowest expense ratio

A 91
E
100
100
T
99
99
F
91
91

SPYV $304.45 M 304454720.80484 Underweight healthcare and technology

A 89
E
98
98
T
91
91
F
89
89

VOOV $628.26 M 628256250 Midcaps

A 89
E
97
97
T
98
98
F
89
89

VONV $895.61 M 895611750 Heavy financial exposure

A 86
E
97
97
T
99
99
F
86
86

PWV $1.15 B 1154623500 Overweight healthcare

A 84
E
88
88
T
98
98
F
84
84

RPV $944.89 M 944892447.492 Pure Value

A 53
E
92
92
T
99
99
F
53
53

MGV $1.52 B 1518062109.54 Mega-cap focus

A 100
E
98
98
T
97
97
F
100
100

VTV $27.6 B 27599080584.63 Cost efficient

A 100
E
99
99
T
100
100
F
100
100

PXLV $61.07 M 61066250 "pure" value

B 72
E
91
91
T
70
70
F
72
72

SYV $2.86 M 2862536.45 Active, very low AUM

D 80
E
75
75
T
54
54
F
80
80

NULV $6.24 M 6241050 N/A

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

SPVU $1.52 M 1521280.425 fundamental scoring

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 01/12/17

Equity: U.S. - Large Cap Value

Performance Dispersion
Performance  [as of 01/13/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Large Value-0.65%7.97%0.41%24.60%8.34%12.68%--
A 91.990736IWX208130560IWXiShares Russell Top 200 Value ETF-0.49%9.15%0.94%26.09%8.73%13.66%--
A 90.34511JKF358355960JKFiShares Morningstar Large Cap Value ETF-0.79%9.38%0.33%27.15%8.89%12.55%4.37%
A 88.064524IVE12957657600IVEiShares S&P 500 Value ETF-0.48%9.87%0.79%27.67%9.17%13.87%5.39%
A 85.778111IWD34771412340IWDiShares Russell 1000 Value ETF-0.56%9.12%0.70%27.67%9.09%14.10%5.65%
A 57.872429FTA953901094.68FTAFirst Trust Large Cap Value AlphaDEX Fund-0.67%12.92%1.15%37.44%8.32%13.66%--
B 65.038824EZY71417010EZYWisdomTree LargeCap Value Fund-0.76%9.40%0.70%17.77%7.44%12.03%--
C 35.969992DVP84892500DVPDeep Value ETF-1.23%11.13%2.85%43.77%------
N/A 0FVAL15225980FVALFidelity Value Factor ETF-0.41%10.87%1.71%--------
A 91.481423SCHV2930382886.2SCHVSchwab U.S. Large-Cap Value ETF0.04%8.32%0.40%22.95%8.82%13.56%--
A 88.671535SPYV304454720.80484SPYVSPDR S&P 500 Value ETF0.21%9.63%1.10%25.04%8.77%13.79%5.57%
A 88.524322VOOV628256250VOOVVanguard S&P 500 Value Index Fund-0.09%9.36%0.74%24.79%8.77%13.84%--
A 86.408251VONV895611750VONVVanguard Russell 1000 Value Index Fund-0.15%8.61%0.66%24.80%8.68%14.03%--
A 84.020628PWV1154623500PWVPowerShares Dynamic Large Cap Value Portfolio0.32%10.55%0.83%25.54%8.64%13.31%6.43%
A 52.705738RPV944892447.492RPVGuggenheim S&P 500 Pure Value ETF-1.59%11.86%1.22%30.72%7.67%16.70%7.84%
A 100MGV1518062109.54MGVVanguard Mega Cap Value Index Fund0.06%9.24%0.37%23.33%9.76%14.26%--
A 100VTV27599080584.63VTVVanguard Value Index Fund-0.14%9.34%0.44%24.09%9.69%14.38%6.08%
B 71.833101PXLV61066250PXLVPowerShares Russell Top 200 Pure Value Portfolio-0.03%12.59%1.19%33.84%9.53%14.30%--
D 79.655809SYV2862536.45SYVSPDR MFS Systematic Value Equity ETF-2.44%6.05%0.82%17.70%8.75%----
N/A 0NULV6241050NULVNuShares ESG Large-Cap Value ETF-----0.08%--------
N/A 0SPVU1521280.425SPVUPowerShares S&P 500 Value Portfolio-1.35%18.01%0.87%29.69%------
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 01/16/17)

All Funds (21)

99
98.664408
98
97.975993
96
95.748586
95
95.49532
94
93.684578
88
88.357832
81
81.243692
N/A
0
99
98.749682
98
98.466292
98
97.586802
97
97.449777
97
97.217455
92
92.174254
91
91.345265
88
88.31067
75
74.933369
100
100
N/A
0
N/A
0
70
69.576366304461

ETF.com Grade as 01/12/17

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
IWX iShares Russell Top 200 Value ETF 0.20% -0.22% -0.13% -0.39% 20.00% / 39.60% Low 95.49532
JKF iShares Morningstar Large Cap Value ETF 0.25% -0.27% -0.10% -0.40% 20.00% / 39.60% Low 95.748586
FVAL Fidelity Value Factor ETF 0.29% -- -- -- -- / -- N/A 0
DVP Deep Value ETF 0.59% 2.56% 3.40% 1.94% 20.00% / 39.60% Low 81.243692
EZY WisdomTree LargeCap Value Fund 0.38% -0.34% -0.31% -0.43% 20.00% / 39.60% Low 93.684578
FTA First Trust Large Cap Value AlphaDEX Fund 0.62% -0.59% -0.48% -0.68% 20.00% / 39.60% Low 88.357832
IVE iShares S&P 500 Value ETF 0.18% -0.18% -0.10% -0.24% 20.00% / 39.60% Low 98.664408
IWD iShares Russell 1000 Value ETF 0.20% -0.18% -0.10% -0.27% 20.00% / 39.60% Low 97.975993
VONV Vanguard Russell 1000 Value Index Fund 0.12% -0.24% -0.05% -0.34% 20.00% / 39.60% Low 97.449777
VOOV Vanguard S&P 500 Value Index Fund 0.15% -0.12% -0.08% -0.22% 20.00% / 39.60% Low 97.217455
VTV Vanguard Value Index Fund 0.08% -0.04% -0.02% -0.07% 20.00% / 39.60% Low 98.749682
MGV Vanguard Mega Cap Value Index Fund 0.07% -0.03% 0.08% -0.07% 20.00% / 39.60% Low 98.466292
PWV PowerShares Dynamic Large Cap Value Portfolio 0.57% -0.64% -0.53% -0.78% 20.00% / 39.60% Low 88.31067
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 91.345265
RPV Guggenheim S&P 500 Pure Value ETF 0.35% -0.36% -0.16% -0.55% 20.00% / 39.60% Low 92.174254
SCHV Schwab U.S. Large-Cap Value ETF 0.04% -0.09% -0.06% -0.15% 20.00% / 39.60% Low 100
SPVU PowerShares S&P 500 Value Portfolio 0.25% -- -- -- 20.00% / 39.60% High 0
SPYV SPDR S&P 500 Value ETF 0.15% -0.13% -0.03% -0.26% 20.00% / 39.60% Low 97.586802
SYV SPDR MFS Systematic Value Equity ETF 0.60% -- -- -- 20.00% / 39.60% High 74.933369
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 01/16/17)

All Funds (21)

100
99.525108
99
99.255347
98
98.070487
91
91.242646
79
79.04305
72
71.550855
49
48.870668
N/A
0
100
99.513747
99
98.872742
99
98.854537
99
98.724513
98
98.326238
98
97.782601
97
96.989203
91
90.793918
70
70.341218
54
53.500087
N/A
0
N/A
0
65
65.002949367399

ETF.com Grade as 01/12/17

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
DVP Deep Value ETF $165.0 K 0.85% 0.13 100.00% 0.07% 0.01% None 48.870668
EZY WisdomTree LargeCap Value Fund $410.45 K 0.32% 0.12 100.00% 0.02% 0.01% None 71.550855
FTA First Trust Large Cap Value AlphaDEX Fund $4.1 M 0.06% 1.74 100.00% 0.01% 0.02% None 98.070487
FVAL Fidelity Value Factor ETF $438.37 K 0.14% 0.32 100.00% 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 99.525108
IWD iShares Russell 1000 Value ETF $261.77 M 0.01% 46.75 100.00% 0.01% 0.03% None 99.255347
IWX iShares Russell Top 200 Value ETF $558.52 K 0.21% 0.24 100.00% 0.01% 0.01% None 79.04305
JKF iShares Morningstar Large Cap Value ETF $946.91 K 0.14% 0.20 100.00% 0.02% 0.01% None 91.242646
SPYV SPDR S&P 500 Value ETF $1.39 M 0.18% 0.26 100.00% 0.01% 0.02% None 90.793918
SYV SPDR MFS Systematic Value Equity ETF $16.45 K 0.56% 0.00 100.00% 0.03% 0.01% None 53.500087
VONV Vanguard Russell 1000 Value Index Fund $3.58 M 0.05% 1.45 100.00% 0.00% 0.02% None 98.724513
VOOV Vanguard S&P 500 Value Index Fund $3.76 M 0.08% 1.52 100.00% 0.01% 0.02% None 97.782601
VTV Vanguard Value Index Fund $116.21 M 0.02% 49.29 100.00% 0.00% 0.02% None 99.513747
NULV NuShares ESG Large-Cap Value ETF $0 0.18% 0.00 100.00% 0.01% 0.04% None 0
MGV Vanguard Mega Cap Value Index Fund $5.59 M 0.09% 3.36 100.00% 0.00% 0.04% None 96.989203
PWV PowerShares Dynamic Large Cap Value Portfolio $4.27 M 0.05% 2.51 100.00% 0.01% 0.03% None 98.326238
PXLV PowerShares Russell Top 200 Pure Value Portfolio $269.4 K 0.22% 0.16 100.00% 0.02% 0.03% None 70.341218
RPV Guggenheim S&P 500 Pure Value ETF $12.91 M 0.02% 4.40 100.00% 0.01% 0.03% None 98.872742
SCHV Schwab U.S. Large-Cap Value ETF $15.27 M 0.04% 6.47 100.00% 0.00% 0.02% None 98.854537
SPVU PowerShares S&P 500 Value Portfolio $12.69 K 0.14% 0.01 100.00% 0.01% 0.03% None 0
GVT Columbia Select Large Cap Value $11.77 K 0.01 100.00% 0.03% 0.03% None 65.002949367399

ETF.com/ Block Liquidity

FVAL
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
DVP
5
4
3
2
1
VONV
5
4
3
2
1
VOOV
5
4
3
2
1
VTV
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
SPYV
5
4
3
2
1
NULV
5
4
3
2
1
SPVU
5
4
3
2
1
SYV
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 01/16/17)

All Funds (21)

92
91.990736
90
90.34511
88
88.064524
86
85.778111
65
65.038824
58
57.872429
36
35.969992
N/A
0
91
91.481423
89
88.671535
89
88.524322
86
86.408251
84
84.020628
80
79.655809
72
71.833101
53
52.705738
100
100
100
100
N/A
0
N/A
0
80
80.181795230874

ETF.com Grade as 01/12/17

Equity: U.S. - Large Cap Value