LGLV: STATE STREET(R) SPDR(R) US LARGE CAP LOW VOLATILITY INDEX ETF
Understanding the State Street SPDR US Large Cap Low Volatility Index ETF (LGLV)
The State Street(R) SPDR(R) US Large Cap Low Volatility Index ETF (LGLV) is designed to invest in large U.S. companies that historically show lower volatility. This means the fund seeks stocks that may experience smaller price swings compared to the broader market.
What the numbers show
LGLV's performance can be looked at in two ways: price return and total return. Price return only tracks the change in the share price, while total return includes both price changes and the value of distributions paid out.
• Year-to-Date (YTD): The price return is approximately 1.27%, while the total return is approximately 2.95%.
• One-Year: The price return is approximately 1.04%, while the total return is approximately 3.27%.
• Three-Year: The price return is approximately 32.15%, while the total return is approximately 40.73%.
• Five-Year: The five-year total return is approximately 44.10%.
Based on an estimated price from roughly one year ago of $175.97, the current price is $177.80.
Income and distribution explanation
LGLV provides cash distributions to investors. The distribution yield is approximately 2.18%. This yield represents the cash paid out relative to the current ETF price. The fund usually pays distributions on a quarterly basis, with 4 payouts recorded over the last 12 months.
It is important to remember that a distribution yield is not the same as total return. Total return shows the overall growth of an investment including those cash payments.
NAV erosion explanation
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, we can look at the price-based evidence. The fund has an erosion-risk score of 94, which is labeled as "Stable / sideways." The erosion severity is described as "good," and there is no severe erosion-risk flag present.
Top Holdings
The following are the top holdings in the fund (note that this is a partial list):
• Welltower Inc (4.57%)
• Realty Income Corp (1.68%)
• Vivmark Residential (1.52%)
• Duke Energy Corp (1.33%)
• Coca-Cola Co (1.23%)
• Consolidated Edison Inc (1.12%)
• Southern Co (1.12%)
• CME Group Inc Class A (1.10%)
• Johnson & Johnson (1.10%)
• Public Service Enterprise Group Inc (1.08%)
Holdings can change over time.
Pros
• The fund shows a history of positive total returns over one, three, and five-year periods.
• The erosion-risk score suggests a stable price trend.
Cons
• The distribution yield is relatively modest compared to some high-income funds.
Beginner takeaway
LGLV focuses on large companies that aim for lower price swings. When researching this ETF, it is helpful to distinguish between the share-price movement (price return) and the total growth including dividends (total return). While it provides regular quarterly distributions, investors should always look at the total return to see how the fund is performing overall.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | WELLTOWER INC | WELL | 4.57% |
| 2 | REALTY INCOME CORP | O | 1.68% |
| 3 | VIVMARK RESIDENTIAL | VMRK | 1.52% |
| 4 | DUKE ENERGY CORP | DUK | 1.33% |
| 5 | COCA-COLA CO | KO | 1.23% |
| 6 | CONSOLIDATED EDISON INC | ED | 1.12% |
| 7 | SOUTHERN CO | SO | 1.12% |
| 8 | CME GROUP INC CLASS A | CME | 1.10% |
| 9 | JOHNSON & JOHNSON | JNJ | 1.10% |
| 10 | PUBLIC SERVICE ENTERPRISE GROUP INC | PEG | 1.08% |