Equity: U.S. - Large Cap Value

FTA Top Performer Intra-day
Price $51.05
Today’s Change +0.10%(0.20)
3:59pm 07/21/2017
EZY Bottom Performer Intra-day
Price $73.40
Today’s Change -0.30%(-0.41)
11:11am 07/21/2017
  • 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 07/21/17)

All Funds (21)

MGV $1.7 B 1699479434.52 Mega-cap focus

A 95
E
98
98
T
99
99
F
95
95

IWX $239.76 M 239756020 Pure large-cap

A 93
E
94
94
T
77
77
F
93
93

VTV $31.92 B 31919418862.8 Cost efficient

A 92
E
99
99
T
100
100
F
92
92

SCHV $3.59 B 3592430662.2 Lowest expense ratio

A 92
E
100
100
T
99
99
F
92
92

SPYV $343.85 M 343847995.4734 Underweight healthcare and technology

A 89
E
98
98
T
85
85
F
89
89

VOOV $770.86 M 770855000 Midcaps

A 89
E
97
97
T
97
97
F
89
89

IVE $13.52 B 13516218400 Very liquid

A 89
E
99
99
T
100
100
F
89
89

JKF $371.13 M 371126525 Concentrated in top 10 holdings

A 87
E
96
96
T
83
83
F
87
87

IWD $36.74 B 36736009870 Most AUM and liquidity

A 87
E
97
97
T
99
99
F
87
87

VONV $1.12 B 1117409000 Heavy financial exposure

A 87
E
97
97
T
99
99
F
87
87

PWV $1.32 B 1321187800 Overweight healthcare

A 75
E
90
90
T
99
99
F
75
75

FTA $1.06 B 1057108851.89 Tiered-weighting

A 59
E
88
88
T
98
98
F
59
59

RPV $886.86 M 886859435.952 Pure Value

A 58
E
93
93
T
98
98
F
58
58

FVAL $38.64 M 38641850 N/A

B 79
E
89
89
T
74
74
F
79
79

EZY $44.14 M 44144940 Medium closure risk

B 70
E
90
90
T
64
64
F
70
70

PXLV $72.92 M 72916000 "pure" value

B 68
E
92
92
T
68
68
F
68
68

SYV $6.05 M 6051243.3 Active, very low AUM

C 80
E
77
77
T
62
62
F
80
80

DVP $101.68 M 101675000 new; trade with care

C 32
E
81
81
T
64
64
F
32
32

SPVU $51.47 M 51473632.171 fundamental scoring

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

SPVM $2.61 M 2614326.143 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 07/13/17

Equity: U.S. - Large Cap Value

Performance Dispersion
Performance  [as of 07/20/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI USA Large Value0.70%3.90%6.37%13.03%7.69%13.79%5.35%
A 94.725054MGV1699479434.52MGVVanguard Mega Cap Value ETF0.94%4.08%5.96%13.45%8.60%14.45%--
A 92.575361IWX239756020IWXiShares Russell Top 200 Value ETF0.57%3.31%5.46%12.93%6.94%13.43%--
A 91.923136VTV31919418862.8VTVVanguard Value ETF1.09%3.91%6.46%14.42%8.74%14.74%5.84%
A 91.735453SCHV3592430662.2SCHVSchwab U.S. Large-Cap Value ETF1.03%3.89%7.25%13.24%8.47%13.84%--
A 88.900392SPYV343847995.4734SPYVSPDR S&P 500 Value ETF1.07%3.13%6.00%13.35%7.69%14.03%5.26%
A 88.79042VOOV770855000VOOVVanguard S&P 500 Value ETF0.96%3.25%5.85%13.43%7.67%14.10%--
A 88.780228IVE13516218400IVEiShares S&P 500 Value ETF0.90%3.19%5.72%13.33%7.63%14.04%5.06%
A 87.432871JKF371126525JKFiShares Morningstar Large Cap Value ETF0.47%2.56%3.77%11.04%6.82%12.47%3.89%
A 86.630651IWD36736009870IWDiShares Russell 1000 Value ETF0.93%3.05%5.57%13.11%7.24%14.02%5.41%
A 86.523661VONV1117409000VONVVanguard Russell 1000 Value ETF0.98%3.09%5.69%13.12%7.27%14.09%--
A 74.58364PWV1321187800PWVPowerShares Dynamic Large Cap Value Portfolio2.15%5.32%9.25%17.23%8.20%14.11%6.75%
A 58.700705FTA1057108851.89FTAFirst Trust Large Cap Value AlphaDEX Fund1.68%4.12%9.52%24.29%7.29%15.10%7.18%
A 57.97499RPV886859435.952RPVGuggenheim S&P 500 Pure Value ETF2.44%4.52%6.59%16.53%5.89%18.64%7.49%
B 78.580649FVAL38641850FVALFidelity Value Factor ETF2.28%5.01%9.80%--------
B 70.428024EZY44144940EZYWisdomTree U.S. LargeCap Value Fund1.41%5.13%9.77%16.71%7.60%12.63%5.15%
B 68.495561PXLV72916000PXLVPowerShares Russell Top 200 Pure Value Portfolio1.25%4.45%7.07%21.59%9.00%15.36%--
C 80.366126SYV6051243.3SYVSPDR MFS Systematic Value Equity ETF1.46%3.35%6.33%13.85%8.83%----
C 31.573283DVP101675000DVPDeep Value ETF3.32%6.51%10.41%20.25%------
N/A 0SPVU51473632.171SPVUPowerShares S&P Enhanced 500 Value Portfolio2.37%6.13%7.55%24.97%------
N/A 0SPVM2614326.143SPVMPowerShares S&P 500 Value With Momentum Portfolio1.83%5.01%----------
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 07/21/17)

All Funds (21)

99
99.23743
99
98.651999
98
98.306804
98
97.535688
97
97.424799
97
97.235868
97
97.056531
96
95.717565
94
94.437449
93
93.260765
92
91.547991
90
89.858625
90
89.536487
89
89.160269
88
88.191929
81
80.878415
77
76.669532
100
100
N/A
0
N/A
0
70
69.576366304461

ETF.com Grade as 07/13/17

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% 2.75% 3.56% 2.39% 20.00% / 39.60% Low 80.878415
RPV Guggenheim S&P 500 Pure Value ETF 0.35% -0.42% -0.36% -0.61% 20.00% / 39.60% Low 93.260765
EZY WisdomTree U.S. LargeCap Value Fund 0.38% -0.40% -0.31% -0.49% 20.00% / 39.60% High 89.858625
SCHV Schwab U.S. Large-Cap Value ETF 0.04% -0.10% -0.05% -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 88.191929
SPVU PowerShares S&P Enhanced 500 Value Portfolio 0.25% -- -- -- 20.00% / 39.60% Medium 0
SPYV SPDR S&P 500 Value ETF 0.15% -0.19% -0.12% -0.30% 20.00% / 39.60% Low 97.535688
IVE iShares S&P 500 Value ETF 0.18% -0.20% -0.17% -0.24% 20.00% / 39.60% Low 98.651999
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% -0.18% -0.30% 20.00% / 39.60% Low 97.056531
VONV Vanguard Russell 1000 Value ETF 0.12% -0.27% -0.12% -0.36% 20.00% / 39.60% Low 97.424799
IWX iShares Russell Top 200 Value ETF 0.20% -0.28% -0.01% -0.37% 20.00% / 39.60% Low 94.437449
VOOV Vanguard S&P 500 Value ETF 0.15% -0.18% -0.11% -0.23% 20.00% / 39.60% Low 97.235868
JKF iShares Morningstar Large Cap Value ETF 0.25% -0.32% -0.27% -0.42% 20.00% / 39.60% Low 95.717565
VTV Vanguard Value ETF 0.06% -0.04% -0.01% -0.07% 20.00% / 39.60% Low 99.23743
MGV Vanguard Mega Cap Value ETF 0.07% -0.05% 0.08% -0.09% 20.00% / 39.60% Low 98.306804
FVAL Fidelity Value Factor ETF 0.29% -- -- -- 20.00% / 39.60% Medium 89.160269
PWV PowerShares Dynamic Large Cap Value Portfolio 0.57% -0.73% -0.61% -0.83% 20.00% / 39.60% Low 89.536487
SPVM PowerShares S&P 500 Value With Momentum Portfolio 0.30% -- -- -- 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 91.547991
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 07/21/17)

All Funds (21)

100
99.523243
100
99.522636
99
99.260177
99
99.073554
99
98.904892
99
98.836879
99
98.728862
98
98.484218
98
98.429868
97
96.681353
85
85.484138
83
82.642168
77
77.266184
74
73.795002
68
67.536854
64
63.827121
64
63.689444
62
61.777624
N/A
0
N/A
0
65
65.002949367399

ETF.com Grade as 07/13/17

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 $81.43 K 0.26% 0.04 100.00% 0.09% 0.01% None 63.827121
VONV Vanguard Russell 1000 Value ETF $3.36 M 0.04% 1.32 100.00% 0.00% 0.02% None 98.904892
EZY WisdomTree U.S. LargeCap Value Fund $57.41 K 0.27% 0.01 100.00% 0.02% 0.01% None 63.689444
VOOV Vanguard S&P 500 Value ETF $2.06 M 0.08% 0.81 100.00% 0.01% 0.02% None 96.681353
FTA First Trust Large Cap Value AlphaDEX Fund $2.66 M 0.05% 1.06 100.00% 0.02% 0.02% None 98.484218
VTV Vanguard Value ETF $102.29 M 0.01% 42.37 100.00% 0.01% 0.02% None 99.522636
FVAL Fidelity Value Factor ETF $332.31 K 0.20% 0.23 99.00% 0.01% 0.03% None 73.795002
IVE iShares S&P 500 Value ETF $61.08 M 0.01% 11.60 100.00% 0.01% 0.02% None 99.523243
SPVM PowerShares S&P 500 Value With Momentum Portfolio $2.56 K 0.26% 0.00 100.00% -- 0.04% None 0
IWD iShares Russell 1000 Value ETF $210.73 M 0.01% 36.17 100.00% 0.01% 0.03% None 99.260177
IWX iShares Russell Top 200 Value ETF $468.69 K 0.20% 0.19 100.00% 0.01% 0.01% None 77.266184
JKF iShares Morningstar Large Cap Value ETF $580.25 K 0.11% 0.12 100.00% 0.02% 0.01% None 82.642168
MGV Vanguard Mega Cap Value ETF $3.97 M 0.05% 2.28 100.00% 0.00% 0% None 98.836879
PWV PowerShares Dynamic Large Cap Value Portfolio $2.62 M 0.04% 1.47 100.00% 0.01% 0.03% None 98.728862
PXLV PowerShares Russell Top 200 Pure Value Portfolio $175.21 K 0.24% 0.10 100.00% 0.01% 0.03% None 67.536854
RPV Guggenheim S&P 500 Pure Value ETF $4.24 M 0.03% 1.46 99.00% 0.03% 0.03% None 98.429868
SCHV Schwab U.S. Large-Cap Value ETF $11.92 M 0.04% 4.76 100.00% 0.01% 0.02% None 99.073554
SPVU PowerShares S&P Enhanced 500 Value Portfolio $176.57 K 0.16% 0.11 100.00% 0.01% 0.03% None 0
SPYV SPDR S&P 500 Value ETF $746.1 K 0.21% 0.13 100.00% 0.01% 0.02% None 85.484138
SYV SPDR MFS Systematic Value Equity ETF $7.45 K 0.27% 0.00 100.00% 0.04% 0.01% 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
DVP
5
4
3
2
1
SYV
5
4
3
2
1
SPVM
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 07/21/17)

All Funds (21)

95
94.725054
93
92.575361
92
91.923136
92
91.735453
89
88.900392
89
88.79042
89
88.780228
87
87.432871
87
86.630651
87
86.523661
80
80.366126
79
78.580649
75
74.58364
70
70.428024
68
68.495561
59
58.700705
58
57.97499
32
31.573283
N/A
0
N/A
0
80
80.181795230874

ETF.com Grade as 07/13/17

Equity: U.S. - Large Cap Value