Equity: U.S. - Large Cap Value

DVP Top Performer Intra-day
Price $29.99
Today’s Change +0.29%(0.98)
3:58pm 11/20/2017
SPVM Bottom Performer Intra-day
Price $27.32
Today’s Change 0.00%(0.00)
4:00pm 11/20/2017
  • 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 11/20/17)

All Funds (24)

MGV $1.82 B 1821451475.78 Mega-cap focus

A 93
E
97
97
T
99
99
F
93
93

VTV $34.46 B 34462662456.44 Cost efficient

A 93
E
99
99
T
100
100
F
93
93

SCHV $3.82 B 3820946608.3 Lowest expense ratio

A 91
E
100
100
T
99
99
F
91
91

IWX $253.47 M 253470610 Pure large-cap

A 91
E
95
95
T
75
75
F
91
91

SPYV $413.29 M 413286619.34184 Underweight healthcare and technology

A 90
E
100
100
T
99
99
F
90
90

VOOV $794.11 M 794109000 Midcaps

A 89
E
97
97
T
96
96
F
89
89

IVE $14.35 B 14345148240 Very liquid

A 89
E
99
99
T
100
100
F
89
89

VONV $1.25 B 1252440000 Heavy financial exposure

A 87
E
96
96
T
99
99
F
87
87

IWD $38.3 B 38297357550 Most AUM and liquidity

A 87
E
98
98
T
99
99
F
87
87

JKF $373.92 M 373924220 Concentrated in top 10 holdings

A 86
E
96
96
T
86
86
F
86
86

PWV $1.46 B 1455613250 Overweight healthcare

A 75
E
90
90
T
99
99
F
75
75

FTA $1.05 B 1045160453.738 Tiered-weighting

A 66
E
88
88
T
98
98
F
66
66

RPV $823.15 M 823146363.192 Pure Value

A 60
E
94
94
T
98
98
F
60
60

FVAL $51.49 M 51493695 N/A

B 78
E
92
92
T
75
75
F
78
78

PXLV $97.55 M 97546800 "pure" value

B 73
E
93
93
T
66
66
F
73
73

EZY $43.38 M 43383230 Medium closure risk

B 68
E
90
90
T
68
68
F
68
68

SYV $6.38 M 6376594.3 Active, very low AUM

C 80
E
77
77
T
62
62
F
80
80

DVP $100.19 M 100188000 new; trade with care

C 37
E
81
81
T
66
66
F
37
37

JVAL $25.07 M 25070000 N/A

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

OVLU $5.01 M 5011225.056 N/A

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

SPVU $51.52 M 51517383.237 fundamental scoring

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

NULV $31.69 M 31689860 N/A

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

SPVM $2.73 M 2726627.266 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 11/16/17

Equity: U.S. - Large Cap Value

Performance Dispersion
Performance  [as of 11/17/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Large Value-0.31%5.23%10.12%14.69%8.08%14.44%6.40%
A 93.253614MGV1821451475.78MGVVanguard Mega Cap Value ETF0.18%5.91%10.83%15.51%9.17%15.24%--
A 92.997039VTV34462662456.44VTVVanguard Value ETF0.27%5.93%11.18%15.59%9.26%15.47%7.13%
A 91.194697SCHV3820946608.3SCHVSchwab U.S. Large-Cap Value ETF0.15%5.97%11.65%16.10%9.02%14.49%--
A 90.913336IWX253470610IWXiShares Russell Top 200 Value ETF-0.69%4.27%8.43%12.54%6.93%13.79%--
A 89.549243SPYV413286619.34184SPYVSPDR Portfolio S&P 500 Value ETF0.08%5.40%9.62%13.98%7.88%14.24%6.40%
A 89.482369VOOV794109000VOOVVanguard S&P 500 Value ETF0.17%5.38%9.53%13.79%7.94%14.36%--
A 89.436125IVE14345148240IVEiShares S&P 500 Value ETF0.06%5.26%9.38%13.76%7.92%14.29%6.12%
A 87.33159VONV1252440000VONVVanguard Russell 1000 Value ETF-0.24%4.78%8.46%12.70%7.33%14.17%--
A 87.26623IWD38297357550IWDiShares Russell 1000 Value ETF-0.35%4.75%8.30%12.63%7.30%14.13%6.51%
A 85.955839JKF373924220JKFiShares Morningstar Large Cap Value ETF-0.11%6.04%9.04%14.49%8.46%13.46%5.38%
A 74.598381PWV1455613250PWVPowerShares Dynamic Large Cap Value Portfolio0.08%6.77%14.03%17.76%9.23%14.99%7.59%
A 65.763823FTA1045160453.738FTAFirst Trust Large Cap Value AlphaDEX Fund1.05%5.73%12.27%15.73%8.09%14.87%8.97%
A 60.101459RPV823146363.192RPVGuggenheim S&P 500 Pure Value ETF1.40%7.42%11.13%14.43%7.08%17.09%9.18%
B 77.766731FVAL51493695FVALFidelity Value Factor ETF1.23%7.15%15.79%19.16%------
B 73.498745PXLV97546800PXLVPowerShares Russell Top 200 Pure Value Portfolio-0.50%5.28%10.47%15.44%9.29%15.12%--
B 67.589395EZY43383230EZYWisdomTree U.S. LargeCap Value Fund2.10%7.78%17.69%21.32%9.07%14.42%6.95%
C 80.366126SYV6376594.3SYVSPDR MFS Systematic Value Equity ETF1.14%5.34%12.72%13.91%9.08%----
C 37.108803DVP100188000DVPDeep Value ETF2.64%4.50%13.54%18.68%8.63%----
N/A 0JVAL25070000JVALJPMorgan U.S. Value Factor ETF--------------
N/A 0OVLU5011225.056OVLUOppenheimer Russell 1000 Value Factor ETF--------------
N/A 0SPVU51517383.237SPVUPowerShares S&P Enhanced 500 Value Portfolio1.24%6.66%11.92%16.99%------
N/A 0NULV31689860NULVNuShares ESG Large-Cap Value ETF-0.36%4.31%10.24%--------
N/A 0SPVM2726627.266SPVMPowerShares S&P 500 Value With Momentum Portfolio1.46%4.86%----------
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 11/20/17)

All Funds (24)

100
99.596236
99
99.238436
99
98.654412
98
98.095069
97
97.113219
97
96.99263
96
96.326494
96
95.899222
95
95.353742
94
94.075675
93
92.576532
92
91.642057
90
89.841044
90
89.688419
88
88.396529
81
80.784583
77
76.669532
100
100
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
70
69.576366304461

ETF.com Grade as 11/16/17

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
DVP Deep Value ETF 0.59% 2.64% 3.56% 2.20% 20.00% / 39.60% Low 80.784583
RPV Guggenheim S&P 500 Pure Value ETF 0.35% -0.44% -0.40% -0.61% 20.00% / 39.60% Low 94.075675
JVAL JPMorgan U.S. Value Factor ETF 0.12% -- -- -- 20.00% / 39.60% Low 0
EZY WisdomTree U.S. LargeCap Value Fund 0.38% -0.44% -0.35% -0.54% 20.00% / 39.60% High 89.688419
SCHV Schwab U.S. Large-Cap Value ETF 0.04% -0.07% -0.04% -0.11% 20.00% / 39.60% Low 100
OVLU Oppenheimer Russell 1000 Value Factor ETF 0.19% -- -- -- 20.00% / 39.60% Low 0
FTA First Trust Large Cap Value AlphaDEX Fund 0.62% -0.59% -0.48% -0.68% 20.00% / 39.60% Low 88.396529
SPVU PowerShares S&P Enhanced 500 Value Portfolio 0.25% -- -- -- 20.00% / 39.60% Medium 0
SPYV SPDR Portfolio S&P 500 Value ETF 0.04% -0.19% -0.15% -0.30% 20.00% / 39.60% Low 99.596236
IVE iShares S&P 500 Value ETF 0.18% -0.19% -0.16% -0.24% 20.00% / 39.60% Low 98.654412
SYV SPDR MFS Systematic Value Equity ETF 0.60% -- -- -- 20.00% / 39.60% High 76.669532
IWD iShares Russell 1000 Value ETF 0.20% -0.23% -0.19% -0.30% 20.00% / 39.60% Low 98.095069
VONV Vanguard Russell 1000 Value ETF 0.12% -0.14% -0.11% -0.36% 20.00% / 39.60% Low 96.326494
IWX iShares Russell Top 200 Value ETF 0.20% -0.28% -0.01% -0.37% 20.00% / 39.60% Low 95.353742
VOOV Vanguard S&P 500 Value ETF 0.15% -0.18% -0.15% -0.23% 20.00% / 39.60% Low 97.113219
JKF iShares Morningstar Large Cap Value ETF 0.25% -0.30% -0.27% -0.42% 20.00% / 39.60% Low 95.899222
VTV Vanguard Value ETF 0.06% -0.03% 0.01% -0.07% 20.00% / 39.60% Low 99.238436
MGV Vanguard Mega Cap Value ETF 0.07% -0.06% -0.03% -0.13% 20.00% / 39.60% Low 96.99263
FVAL Fidelity Value Factor ETF 0.29% -- -- -- 20.00% / 39.60% Low 91.642057
PWV PowerShares Dynamic Large Cap Value Portfolio 0.57% -0.74% -0.68% -0.83% 20.00% / 39.60% Low 89.841044
NULV NuShares ESG Large-Cap Value ETF 0.35% -- -- -- 20.00% / 39.60% Medium 0
PXLV PowerShares Russell Top 200 Pure Value Portfolio 0.39% -0.45% -0.36% -0.50% 20.00% / 39.60% Low 92.576532
SPVM PowerShares S&P 500 Value With Momentum Portfolio 0.30% -- -- -- 20.00% / 39.60% High 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 11/20/17)

All Funds (24)

100
99.53382
100
99.520077
99
99.270419
99
99.158146
99
99.144624
99
98.862567
99
98.669739
99
98.606935
98
98.407502
98
98.342997
96
96.220335
86
85.536481
75
75.374955
75
74.62305
68
67.868955
66
66.113896
66
65.983674
62
61.777624
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
65
65.002949367399

ETF.com Grade as 11/16/17

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
DVP Deep Value ETF $93.54 K 0.21% 0.06 100.00% 0.05% 0.01% None 65.983674
VONV Vanguard Russell 1000 Value ETF $2.89 M 0.03% 1.12 100.00% 0.00% 0.02% None 99.144624
EZY WisdomTree U.S. LargeCap Value Fund $68.1 K 0.13% 0.02 100.00% 0.02% 0.01% None 67.868955
VOOV Vanguard S&P 500 Value ETF $1.64 M 0.07% 0.62 100.00% 0.01% 0.02% None 96.220335
FTA First Trust Large Cap Value AlphaDEX Fund $2.36 M 0.04% 0.91 100.00% 0.01% 0.02% None 98.407502
VTV Vanguard Value ETF $102.42 M 0.01% 41.18 100.00% 0.01% 0.02% None 99.53382
FVAL Fidelity Value Factor ETF $363.93 K 0.18% 0.24 100.00% 0.01% 0.03% None 74.62305
IVE iShares S&P 500 Value ETF $58.14 M 0.01% 10.74 100.00% 0.01% 0.02% None 99.520077
NULV NuShares ESG Large-Cap Value ETF $303.21 K 0.09% 0.21 100.00% 0.01% 0.04% None 0
IWD iShares Russell 1000 Value ETF $175.13 M 0.01% 29.36 100.00% 0.01% 0.03% None 99.270419
SPVM PowerShares S&P 500 Value With Momentum Portfolio $0 0.27% 0 100.00% 0.01% 0.04% None 0
IWX iShares Russell Top 200 Value ETF $384.43 K 0.13% 0.15 100.00% 0.01% 0.01% None 75.374955
JVAL JPMorgan U.S. Value Factor ETF $0 0.09% 0 -- -- 0.08% N/A 0
JKF iShares Morningstar Large Cap Value ETF $623.18 K 0.03% 0.13 100.00% 0.02% 0.01% None 85.536481
OVLU Oppenheimer Russell 1000 Value Factor ETF $0 0.08% 0 -- 0.00% 0.04% N/A 0
MGV Vanguard Mega Cap Value ETF $3.03 M 0.06% 1.64 100.00% 0.01% 0.00%% None 98.669739
PWV PowerShares Dynamic Large Cap Value Portfolio $2.72 M 0.04% 1.45 100.00% 0.01% 0.03% None 98.862567
PXLV PowerShares Russell Top 200 Pure Value Portfolio $116.5 K 0.23% 0.06 100.00% 0.02% 0.03% None 66.113896
RPV Guggenheim S&P 500 Pure Value ETF $2.75 M 0.02% 0.88 100.00% 0.03% 0.03% None 98.342997
SCHV Schwab U.S. Large-Cap Value ETF $8.91 M 0.03% 3.38 100.00% 0.01% 0.02% None 99.158146
SPVU PowerShares S&P Enhanced 500 Value Portfolio $105.61 K 0.07% 0.06 100.00% 0.01% 0.03% None 0
SPYV SPDR Portfolio S&P 500 Value ETF $1.8 M 0.04% 1.21 100.00% 0.00% 0.03% None 98.606935
SYV SPDR MFS Systematic Value Equity ETF $57.86 K 0.17% 0.01 100.00% 0.04% 0.00% None 61.777624
GVT Columbia Select Large Cap Value $11.77 K 0.01 100.00% 0.03% 0.03% None 65.002949367399

ETF.com/ Block Liquidity

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
NULV
5
4
3
2
1
DVP
5
4
3
2
1
SYV
5
4
3
2
1
SPVM
5
4
3
2
1
JVAL
5
4
3
2
1
OVLU
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 11/20/17)

All Funds (24)

93
93.253614
93
92.997039
91
91.194697
91
90.913336
90
89.549243
89
89.482369
89
89.436125
87
87.33159
87
87.26623
86
85.955839
80
80.366126
78
77.766731
75
74.598381
73
73.498745
68
67.589395
66
65.763823
60
60.101459
37
37.108803
N/A
0
N/A
0
N/A
0
N/A
0
N/A
0
80
80.181795230874

ETF.com Grade as 11/16/17

Equity: U.S. - Large Cap Value