SPYV
SPDR Portfolio S&P 500 Value ETF
Published by Radif Partners · Updated
Overview
SPDR Portfolio S&P 500 Value ETF (SPYV) tracks the S&P 500 Value index and holds its constituents directly, a physical replication managed by SPDR. Dividends are paid out to holders rather than reinvested, so SPYV suits investors seeking regular income. The fund is domiciled in US, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.04% of assets, and the fund holds 35.6B under management. Over five years the fund returned 9.0% a year on average, against 16.0% over three years. It is not eligible for the French PEA, but can be held in a securities account, a UK ISA or a German Depot. Its risk level is rated medium. Launched on 2000-09-25, the fund is denominated in USD and has 26 years of track record. Because SPYV distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in US sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
At 0.04%, this fund sits among the cheapest in its category: of 224 comparable funds, only a tenth match it or do better. On £10,000 that is about 4 a year against 20 for the median fund, close to 160 of difference over a decade. Once fees are at the floor, they stop being where the difference lies: it moves to replication quality, read in the tracking difference, and to your broker's dealing cost, which can exceed the fee saving if you buy in small amounts.
Replication is physical: the fund actually holds the constituents of S&P 500 Value, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.04% headline. That is why two funds at the same price do not track their index with the same fidelity.
The fund is domiciled in the United States, and for a European investor that is the point to settle before any other. A US fund is outside UCITS regulation: most European brokers cannot offer it to a retail client for want of a key information document, so access depends on the investor's status. Two tax consequences follow as well: dividends paid to a non-resident bear US withholding, reduced by treaty where a W-8BEN is in place, and US securities held directly fall within US estate tax above a threshold that is low for a non-resident. An Irish-domiciled equivalent avoids both questions.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
With 35.6 billion in assets and 26 years of history, this fund has the size and the record that make closure unlikely and the spread narrow. Three checks remain, once a year, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of S&P 500 Value, which can change its selection or weighting rules without the fund's name moving, in which case what you hold has changed with nothing to announce it.
S&P 500 Value applies a valuation screen: it keeps companies that are cheap relative to their accounts. The gap against a broad index is therefore a choice rather than an accident, and it is paid for with long stretches of lagging, sometimes a decade, before rapid catch-ups. Two technical points decide the outcome: the definition of value the index uses, a ratio to earnings or to book value, which treat intangible-heavy companies very differently; and the rebalancing frequency, which sets how fast the portfolio follows the screen.
Over one year the fund shows 12.1% and over five years 9.0% annualised, two figures close together, which is the most ordinary and least informative configuration: it does not say the fund is steady, only that the chosen start and end points resemble each other. Comparing these figures with another fund means something only if the index is the same; otherwise it is an index comparison dressed as a fund comparison.
0.04%
35.6B
35,618M USDMedium
558
Physical
Distributing
USD
US
S&P 500 Value
SPDR
2000-09-25 (26 years)
Contextual Analysis
Fund Size
With 35.6B in assets, this is a large fund, good liquidity and tight spreads.
Fee Positioning
A TER of 0.04% is among the lowest on the market, excellent value.
Track Record
Launched in 2000-09-25, this fund has 26 years of history, long and reliable track record.
Risk Profile
Medium risk, good risk/return balance for a 5+ year horizon.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | +1.0% |
| 3 Months (est.) | – | +2.9% |
| 6 Months (est.) | – | +5.9% |
| YTD (est.) | – | +4.9% |
| 1 Year | +12.1% | +12.1% |
| 3 Years | +16.0% | +56.2% |
| 5 Years | +8.9% | +53.5% |
| Since inception (26y) | +12.4% | +1971.3% |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
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About this ETF
The SPDR Portfolio S&P 500 Value ETF tracks the S&P 500 Value index. It is managed by SPDR using physical replication and follows a distributing distribution policy. The fund is denominated in USD and domiciled in US. It has a total expense ratio (TER) of 0.04%.
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Frequently asked questions
What do SPYV's 0.04% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £0.40 a year and roughly £4 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
Is SPYV genuinely diversified?
Less so than the number of holdings suggests. S&P 500 Value weights its constituents by market capitalisation, so the largest companies make up a share of the fund far above their number, and that concentration deepens without any rule changing. The useful check is the weight of the top ten holdings, published monthly by SPDR: that figure says how many companies the outcome actually depends on.
What should you re-check on SPYV once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of S&P 500 Value, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does SPYV lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and SPDR publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Can a European investor buy SPYV?
Not always. This fund sits outside the UCITS framework, so most European brokers cannot offer it to a retail client for want of a key information document in their language. Two consequences follow: US withholding tax on dividends, reduced by treaty where a W-8BEN is filed, and US securities falling within US estate tax above a threshold that is low for a non-resident.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.