Home > A List Of The Top 10 U.S. Large & All-Cap Sector ETFs (SPY, IVV, VIG, RSP, IWB, IWF, IWD, DIA, VTI)
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A List Of The Top 10 U.S. Large & All-Cap Sector ETFs (SPY, IVV, VIG, RSP, IWB, IWF, IWD, DIA, VTI)

June 23rd, 2011

David Fry:  This posting features a comprehensive review of the large cap ETF sector. To simplify matters for investors, and to be consistent with previous practices, we’ve highlighted what we feel are the top 10 choices in this category. Doing so makes sorting through the sector more manageable for most investors.

The ETFs chosen represent a broad cross section of domestic issues from a variety of sponsors. Most issues are seasoned being issued long ago with substantial assets under management and good liquidity. We’re not necessarily recommending one issue over another; rather we’re trying to feature those issues that aren’t repetitive. If other choices are available these are mentioned where applicable.

Within this sector we have combined choices for growth, value and a blend of these styles. There are occasional periods when value outperforms growth and vice versa, but even over intermediate periods they tend to achieve the same total return. Others may disagree about this conclusion citing studies demonstrating superior returns of one to the other. However, most of these experiences are transitory and driven by various economic conditions including monetary policies and the overall market environment. But, some investors wish to pursue what they believe is a more conservative value approach while others prefer growth both choices are understandable. Again, you are free to choose what suits your own style and objectives best.

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SPDR S&P 500 ETF (NYSE:SPY) tracks the S&P 500 index. It holds the distinction of being the original ETF created by Nate Most for the AMEX in January 1993. (Nate passed away at the age of 90 in 2004 a few months after we had a wonderful lunch with him. His only regret is not having any royalties from his creation. Even then he marveled at how ETFs had grown in popularity.) AUM (Assets under Management) exceeds $91 billion and average daily trading volume is over 170M shares. The expense ratio is only .10% making it one of the lowest cost ETFs available. With SPY being as popular and large as it is it shouldn’t surprise that futures, options and leveraged long/short issues (see reports to follow) are available. The current dividend yield is less than 2% and YTD return as of June 2011 is .80%.

Competitive choices would be iShares S&P 500 ETF (NYSE:IVV) and could also include Vanguard Large Cap Blend ETF (NYSE:VIG) among others.

Data as of June 2011

SPY Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 3.37%
  2. Apple, Inc. (AAPL): 2.61%
  3. Chevron Corporation (CVX): 1.71%
  4. General Electric Company (GE): 1.70%
  5. International Business Machines Corp (IBM): 1.68%
  6. Procter & Gamble Company (PG): 1.53%
  7. AT&T, Inc. (T): 1.52%
  8. Microsoft Corporation (MSFT): 1.50%
  9. Johnson & Johnson (JNJ): 1.50%
  10. JPMorgan Chase & Co (JPM): 1.40%

Rydex S&P 500 Equal Weight ETF (NYSE:RSP) also follows the S&P 500 Index but breaks the index up into equal weights vs weighted SPY and IVV. Generally, we prefer using RSP for our portfolios when long given upside returns have been marginally superior. RSP was launched in April 2003. AUM equal $3 billion and average daily trading volume is 900K shares. The expense ratio is .40% which is rather high compared to weighted competitors. The dividend yield is over 1.5% and YTD return as of June 2011 is 2.80%.

Data as of June 2011

RSP Top Ten Holdings & Weightings

  1. National Semiconductor (NSM): 0.33%
  2. Cephalon, Inc. (CEPH): 0.27%
  3. Abercrombie & Fitch Co. (ANF): 0.27%
  4. Dean Foods Company (DF): 0.26%
  5. Biogen Idec, Inc. (BIIB): 0.26%
  6. Gamestop Corporation A (GME): 0.25%
  7. Tiffany & Co. (TIF): 0.25%
  8. Lorillard, Inc. (LO): 0.25%
  9. Limited Brands, Inc. (LTD): 0.25%
  10. Electronic Arts, Inc. (ERTS): 0.24%

iShares Russell 1000 Index ETF (NYSE:IWB) tracks largest 1000 stocks within the Russell 3000 Index. The fund was launched in May 2000. AUM equals $6.6 billion and daily trading volume is roughly 875K shares. Leveraged long and inverse issues are available (see future reports). The expense ratio is .15%. The dividend yield based on current prices is 1.6% and YTD performance as of June 16, 2011 is 1.12%.

Data as of June 2011

IWB Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 3.06%
  2. Apple, Inc. (AAPL): 2.27%
  3. IBM Corp. (IBM): 1.56%
  4. Chevron Corporation (CVX): 1.51%
  5. General Electric Company (GE): 1.51%
  6. Procter & Gamble Company (PG): 1.39%
  7. Microsoft Corporation (MSFT): 1.38%
  8. AT&T, Inc. (T): 1.34%
  9. Johnson & Johnson (JNJ): 1.33%
  10. Pfizer Inc. (PFE): 1.24%

iShares Russell 1000 Growth ETF (NYSE:IWF) follows the top 1000 growth stocks within the Russell 3000 Index. The fund was launched in May 2000. IWF has AUM near $13 billion with average daily trading volume of 2.3M shares. The expense ratio is .20%. The dividend is $.19 making the yield roughly 1.30% while the YTD return as of June 16, 1011 is .70%.

Data as of June 2011

IWF Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 5.57%
  2. Apple, Inc. (AAPL): 4.51%
  3. IBM Corp (IBM): 3.08%
  4. Oracle Corporation (ORCL): 1.86%
  5. Google, Inc. (GOOG): 1.84%
  6. Microsoft Corporation (MSFT): 1.82%
  7. Philip Morris International, Inc. (PM): 1.59%
  8. Coca-Cola Company (KO): 1.49%
  9. Schlumberger, Ltd. (SLB): 1.46%
  10. Qualcomm, Inc. (QCOM): 1.37%

iShares S&P 500 Growth ETF (NYSE:IVW) tracks the growth sector of the stocks in the S&P 500 Index. The fund was launched in May 2000. AUM equal $6.1 billion and average daily trading volume is over 630K shares. The expense ratio is .18% and the dividend is $.24 making the yield roughly 1.40%. YTD return as of June 16, 2011 equals .96%.

Among others, alternative choices may include Vanguard Large-Cap ETF (NYSE:VV) which follows the MSCI US Prime Market 750 Index and PowerShares Dynamic Market ETF (NYSE:PWC) which tracks the Dynamic Market Intellidex Index.

Data as of June 2011

IVW Top Ten Holdings & Weightings

  1. Apple, Inc. (AAPL): 5.11%
  2. IBM Corp (IBM): 3.28%
  3. Microsoft Corporation (MSFT): 2.95%
  4. Coca-Cola Company (KO): 2.44%
  5. Oracle Corporation (ORCL): 2.12%
  6. Google, Inc. (GOOG): 2.12%
  7. Philip Morris International, Inc. (PM): 2.06%
  8. Schlumberger, Ltd. (SLB): 1.86%
  9. PepsiCo, Inc. (PEP): 1.80%
  10. Johnson & Johnson (JNJ): 1.76%

iShares Russell 1000 Value ETF (NYSE:IWD) tracks the 1000 stocks in the Russell 3000 that are considered to possess value characteristics. These characteristics include lower price to book, higher dividends and lower PE ratios among other considerations. The fund was launched in May 2000 and has AUM of $11.3 billion and an average daily trading volume of 1.6M shares. The expense ratio is .22%. IWD has a dividend of $.31 making the yield roughly 1.88%. The YTD return as of June 15, 2011 equals 1.23%.

Data as of June 2011

IWD Top Ten Holdings & Weightings

  1. Chevron Corporation (CVX): 2.89%
  2. AT&T, Inc. (T): 2.70%
  3. Procter & Gamble Company (PG): 2.63%
  4. Pfizer Inc. (PFE): 2.51%
  5. JPMorgan Chase & Co (JPM): 2.49%
  6. General Electric Company (GE): 2.33%
  7. Johnson & Johnson (JNJ): 2.29%
  8. Wells Fargo Company (WFC): 2.00%
  9. Berkshire Hathaway Inc B (BRK.B): 1.98%
  10. Bank of America Corp DE (BAC): 1.71%

SPDR Dow Jones Industrial Average ETF (NYSE:DIA) tracks the popular Dow Jones Industrial Average Index of 30 stocks. It was launched January 1998. AUM exceeds $9 billion and average daily trading volume is over 7M shares. The index is price weighted meaning what happens to higher share priced IBM for example has more impact than lower priced Alcoa. The expense ratio is .16% and the dividend is currently $.23 making the yield as of June 17, 2011 over 4%. This popular issue also has options; leveraged long and inverse issues available (see future reports). YTD performance is 3.37%.

Data as of June 2011

DIA Top Ten Holdings & Weightings

  1. IBM Corp (IBM): 10.16%
  2. Caterpillar Inc. (CAT): 6.36%
  3. Chevron Corporation (CVX): 6.31%
  4. 3M Company (MMM): 5.68%
  5. United Technologies Corp (UTX): 5.28%
  6. ExxonMobil Corporation (XOM): 5.02%
  7. McDonald’s Corporation (MCD): 4.90%
  8. Boeing Company (BA): 4.69%
  9. Johnson & Johnson (JNJ): 4.05%
  10. Procter & Gamble Company (PG): 4.03%

iShares S&P 500 Value ETF (NYSE:IVE) follows the S&P 500/Citigroup Value Index which carves out those securities with value characteristics from the S&P 500 index. The fund was launched in May 2000. AUM equals $4.3 billion and average daily trading volume exceeds 550K shares. As of June 16, 2011 the dividend is $.28 and yield is 1.88%. YTD return through the same date is .99%.

Alternative choices could include Vanguard Value ETF (NYSE:VTV), Vanguard Mega-Cap Value ETF (NYSE:MGV), iShares Morningstar Large Value ETF (NYSE:JKF), iShares Russell Top 200 Value (NYSE:IWX), First Trust Large Cap Value (NYSE:FTA), Schwab U.S. Large-Cap Value ETF (NYSE:SCHV), SPDR S&P 500 Value ETF (NYSE:SPYV) and Rydex S&P 500 Pure Value ETF (NYSE:RPV).

Data as of June 2011

IVE Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 6.89%
  2. Chevron Corporation (CVX): 3.51%
  3. General Electric Company (GE): 3.47%
  4. JPMorgan Chase & Co (JPM): 2.87%
  5. Pfizer Inc. (PFE): 2.86%
  6. Berkshire Hathaway Inc B (BRK.B): 2.28%
  7. Citigroup Inc (C): 1.99%
  8. Bank of America Corp DE (BAC): 1.98%
  9. AT&T, Inc. (T): 1.80%
  10. Wal-Mart Stores, Inc. (WMT): 1.80%

 

We move now to include what would be “total” or “broad” market ETFs which include Large, Mid and Small Cap issues linked to well-known indexes. Taken as a whole they cover a segment that can be included within this theme’s analysis.

Vanguard Total Market ETF (NYSE:VTI) tracks the MSCI U.S. Broad Market Index. The index represents 99.5% of the total market capitalization of the U.S. common stocks traded on the major markets. The fund was launched in May 2001. AUM equal $19 billion and average daily trading volume exceeds 1.9M shares. The expense ratio is an ultra-low .07% which is one of Vanguard’s primary positive features since it enhances returns for buy and hold investors and financial advisors. The dividend is $.28 making the current yield 1.70%. The YTD return through June 16, 2011 is 1.20%.

Data as of June 2011

VTI Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 2.82%
  2. Apple, Inc. (AAPL): 2.12%
  3. Chevron Corporation (CVX): 1.44%
  4. General Electric Company (GE): 1.42%
  5. IBM Corp (IBM): 1.35%
  6. Microsoft Corporation (MSFT): 1.30%
  7. AT&T, Inc. (T): 1.20%
  8. JP Morgan Chase & Co (JPM): 1.20%
  9. Procter & Gamble Company (PG): 1.15%
  10. Johnson & Johnson (JNJ): 1.08%

iShares Dow Jones Total Market ETF (NYSE:IYY) follows the Dow Jones U.S. Index which measures the total U.S. market. The fund was launched in June 2000. AUM is just shy of $600 million with average daily trading volume of roughly 40K shares. The expense ratio is .21%. Dividend is $.25 for a yield of 1.50%. YTD return as of June 16, 2011 is 2.46% which is tops in the group.

Data as of 2011-06-03

IYY Top Ten Holdings & Weightings

  1. ExxonMobil Corporation (XOM): 2.91%
  2. Apple, Inc. (AAPL): 2.20%
  3. Chevron Corporation (CVX): 1.45%
  4. General Electric Company (GE): 1.45%
  5. IBM Corp (IBM): 1.42%
  6. Procter & Gamble Company (PG): 1.30%
  7. AT&T, Inc. (T): 1.30%
  8. Microsoft Corporation (MSFT): 1.29%
  9. Johnson & Johnson (JNJ): 1.27%
  10. Pfizer Inc. (PFE): 1.19%

These are the index related ETFs that make headlines overall. These issues offer growth opportunities, overall asset appreciation and perhaps increases in dividends are possible.

We’re not ranking these ETFs although we use a few of them in portfolios. Nevertheless, most of these feature similar trends and this is heavily affected by Fed monetary policies in effect since 2009. These policies have resulted in high sector to sector correlations making choices for now inconsequential.

As stated with other sectors, remember ETF sponsors must issue and their interests aren’t aligned with yours. They have a business interest and wish to have a competitive presence in any popular sector.

For further information about portfolio structures using this or other ETFs see www.etfdigest.com.

You may address any feedback to:  feedback@etfdigest.com

Written By David Fry From ETF Digest  Note: Long MGV.

David is founder and publisher of ETF Digest and best selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management published by Wiley Finance in 2008.  In July of 2009, Fry was named in the ETF Hall of Fame as one of the Top 25 people who revolutionized the ETF industry and guided ETF investing from its conception to widespread acceptance among all breeds of investors. Fry founded the ETF Digest in 2001 and was among the very first to see the need for an online publication that provided individual investors and financial professionals with trading tools, market information and actionable advice on ETF investing.  ETF Digest was recently ranked 9th in the Top 100 ETF websites from Alexa on exchange traded funds. Dave Fry has devoted over 35 years to the business of trading and portfolio management. He is registered as an arbitrator with the Financial Industry Regulatory Authority (FINRA) and the National Futures Association (NFA).


NYSE:DIA, NYSE:IVV, NYSE:IWB, NYSE:IWD, NYSE:IWF, NYSE:RSP, NYSE:SPY, NYSE:VIG, NYSE:VTI


 

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