Top 10 U.S. Large-Cap Sector ETFs

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

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.

 VTI (Vanguard Total Market ETF) 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%

 



IWV (iShares Russell 3000 Index ETF) follows this index which is capitalization-weighted consisting of the largest 3000 companies in the U.S. The fund was launched in May 2000. The expense ratio is .21%. AUM equal $3.2 billion and average daily trading volume is over 265K shares. As of June 16, 2011 the dividend is $.29 making the yield 1.50%, YTD return is 2%.



Data as of June 2011



IWV Top Ten Holdings & Weightings

1. ExxonMobil Corporation (XOM):                  2.80%
2. Apple, Inc. (AAPL):                                       2.08%
3. International Business Machines Corp (IBM): 1.43%
4. Chevron Corporation (CVX): 1.39%
5. General Electric Company (GE): 1.38%
6. Procter & Gamble Company (PG): 1.27%
7. Microsoft Corporation (MSFT): 1.26%
8. AT&T, Inc. (T): 1.23%
9. Johnson & Johnson (JNJ): 1.22%
10. Pfizer Inc. (PFE): 1.14%

 



IYY (iShares Dow Jones Total Market ETF) 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: [e-mail]  

 

(Source for holding data is from ETF Database and from various sponsors.)

 

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of ETF Digest, Dave's Daily blog and the best-selling book author of Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management, published by Wiley Finance in 2008. A detailed bio is here: Dave Fry.

« First ‹ Previous 1 2 3 4