Broad Market or Value ETF? The Right Choice Depends Entirely on the Investor
The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (NYSEMKT:SPTM) provides broad market exposure across all cap sizes, while the Vanguard Morningstar Value ETF (NYSEMKT:VTV) targets large-cap value stocks.
Choosing between SPTM and VTV involves deciding between total market representation and a large-cap value strategy. While both serve as low-cost foundational holdings, they provide very different exposure to technology sector volatility and to the stability of value-oriented firms, making them suited to different portfolio roles.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.