Should SPDR Portfolio S&P 500 Growth ETF (SPYG) Be on Your Investing Radar?

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the SPDR Portfolio S&P 500 Growth ETF (SPYG) is a passively managed exchange traded fund launched on 09/25/2000.The fund is sponsored by State Street Global Advisors. It has amassed assets over $32.60 billion, making it one of the largest ETFs attempting to match the Large Cap Growth segment of the US equity market.Why Large Cap GrowthCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Additionally, growth stocks have a greater level of risk associated with them. Compared to value stocks, growth stocks are a safer bet in a strong bull market, but don't perform as strongly in almost all other financial environments.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.04%, making it the least expensive products in the space.It has a 12-month trailing dividend yield of 0.65%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 49.10% of the portfolio. Consumer Discretionary and Telecom round out the top three.Looking at individual holdings, Apple Inc (AAPL) accounts for about 12.63% of total assets, followed by Microsoft Corp (MSFT) and Nvidia Corp (NVDA).The top 10 holdings account for about 60.1% of total assets under management.Performance and RiskSPYG seeks to match the performance of the S&P 500 Growth Index before fees and expenses. The S&P 500 Growth Index measures the performance of the large-capitalization growth sector in the U.S. equity market.The ETF has added about 35.04% so far this year and is up roughly 43.73% in the last one year (as of 11/13/2024). In the past 52-week period, it has traded between $62.24 and $87.59.The ETF has a beta of 1.07 and standard deviation of 21.87% for the trailing three-year period, making it a medium risk choice in the space. With about 236 holdings, it effectively diversifies company-specific risk.AlternativesSPDR Portfolio S&P 500 Growth ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SPYG is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $151.62 billion in assets, Invesco QQQ has $312.43 billion. VUG has an expense ratio of 0.04% and QQQ charges 0.20%.Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Portfolio S&P 500 Growth ETF (SPYG): ETF Research Reports Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Vanguard Growth ETF (VUG): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks