Combines the discipline of passive management with the outperformance-generating potential of active management.
SPDR Russell 1000 Momentum Focus ETFImportant Risk Information
Gross Expense Ratio: 0.20%*
- The SPDR Russell 1000 Focus Factor ETFs seek to harness the full power of factor investing to meet specific investor objectives and address some of the main motivations for using smart beta: in the case of ONEO, increased growth potential (momentum)
- ONEO seeks to follow the Russell 1000 Momentum Focused Factor Index^, which employs a unique proprietary methodology that is designed to isolate and preserve certain heightened factor exposures
- The specific focus on momentum potentially captures the excess returns of stocks that have enjoyed higher recent price performance compared to other securities due to the tendency for stock prices to form trends over certain time horizons
- Smart beta strategy utilizes alternative-weighting methodologies to tilt portfolios towards certain factors, providing a potential opportunity to achieve a particular investment objective — which may help investors construct more sophisticated portfolios
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*The gross expense ratio is the funds total annual operating expenses ratio. It is gross of any fee waivers or expense reimbursements. It can be found in the funds most recent prospectus.
^The Index is designed to reflect the performance of a segment of large-capitalization U.S. equity securities demonstrating a combination of core factors (high value, high quality, and low size characteristics), with a focus factor comprising high momentum characteristics (the “Factor Characteristics”). To construct the Index, Frank Russell Company (“Index Provider”) utilizes a proprietary rules-based multi-factor scoring process that seeks to increase exposure (or “tilt”) to companies in the Russell 1000 Index demonstrating the Factor Characteristics. The Russell 1000 Index is a market-capitalization index that measures the performance of the large-cap segment of the U.S. equity universe. Within the multi-factor scoring process, a specific focus is applied towards a company’s momentum factor. Companies with higher momentum are those whose securities have had higher recent price performance compared to other securities. Each stock’s combined multi-factor score is multiplied by the stock’s free float market cap weight in the Russell 1000 Index to determine the constituents of the Index and each constituent’s weight in the Index. Companies in the Russell 1000 Index are excluded from the Index if they do not meet a minimum weight in the Index. A company’s momentum factor score is based on historical total return over the 11 months ending on the last business day of the month prior to the Index rebalancing month. A company’s value factor score is based on cash flow yield, earnings yield, and sales to price ratio, calculated based on the company’s total market capitalization and information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s quality factor score is based on return on assets, change in asset turnover, accruals, and leverage, calculated based on information reported in the company’s most recent annual financial statement as of the last business day of the month prior to the Index rebalancing month. A company’s size factor score is based on total market capitalization as of the last business day of the month prior to the Index rebalancing month.