SPDR SSGA US Small Cap Low Volatility ETF (SMLV)
ARCA ARCA Primary 
XBER 
SMLV: A Low-Volatility ETF With Limited Appeal
SPDR SSGA US Small Cap Low Volatility Index ETF focuses on U.S. small-cap stocks with low volatility but doesn't outperform broader or larger-cap low volatility funds. SMLV's portfolio is heavily weighted towards value stocks, with 54% in value and only 6% in growth, leading to weaker growth prospects. The fund has a high 68.7% exposure to the financial sector, making it vulnerable during economic downturns and less diversified.
SMLV: Moderate Volatility With Heavy Allocation To Financials
The SPDR SSGA US Small Cap Low Volatility Index ETF achieves low volatility through a concentrated portfolio in financial services, outperforming the Russell 2000 with lower volatility. SMLV's low price-to-earnings multiples make it suitable for value-oriented investors, especially those bullish on financials, particularly regional banks. Despite sector concentration, SMLV's outlook is positive, as it is poised to benefit from local U.S. infrastructure investments and increased M&A activity.
SMLV: No Reason Pairing Small-Cap With Low Volatility
SMLV tracks a small-cap low-volatility index in order to provide exposure to the small-cap segment but with a low-volatility bias. This may appear like a good idea for risk-averse investors, but the limited impact the low-volatility factor has here complicates things. For a defensive position, choosing a mid-cap or large-cap fund with a low-volatility bias seems like the wiser choice.
SMLV: A Way To Walk Before You Run To Small-Caps
SPDR® SSGA US Small Cap Low Volatility Index ETF offers exposure to low-volatility US small-cap stocks, focusing on the lower half of the spectrum based on volatility. Fund holdings include Nelnet Inc, Community Financial System, PJT Partners Inc, Hanover Insurance Group, and Old National Bancorp. Sector allocation is surprising, with Financials making up nearly 70% of the fund, followed by Industrials, Real Estate, and Health Care. Peer comparison shows outperformance against iShares MSCI USA Small-Cap Minimum Volatility Factor ETF.
