Comparing the Large-Cap ETFs | ETF Trends

When it comes to exchange traded fund (ETF) investing, are large market capitalization funds created equally?

Large-caps are the most common and popular investing asset class, and they are easy to compare because their make-up is similar.

Will McClatchy for ETF Zone gives us an in-depth look at the different large-cap ETFs on the market, to help you decide which fund works best for your goals.

  • SPDRs (SPY): Holds one-tenth of all ETF assets above $70 million; pays quarterly; down 10.6% year-to-date.
  • iShares S&P 500 (IVV): tracks the same index as SPY, yet charges 0.1% less than SPY; pays bi-annually; down 10.6% year-to-date.

In terms of returns, SPY and IVV are pretty much right in line with one another. McClatchy also notes that SPY may be one of those ETFs with innovative managers who are making index changes efficiently. Smaller spreads may be executed behind the scenes by the specialists.

Large-cap firms are more likely to be mixing in with foreign currencies due to the breadth of their market cap. There is the added attribute of hedging the U.S. dollar, if that is a plus for you. Other large-caps ETFs available:

  • Vanguard Large-Cap ETF (VV): follows top 750 U.S. large-cap stocks; expense ratio 0.7%; down 10.1% year-to-date.
  • SPDR Dow Jones Wilshire Large-Cap (ELR): 0.20% expense ratio; follows top 750 U.S. large-caps stocks; down 11.2% year-to-date.
  • SPA Market Grader Large Cap 100 (SZG): Has a basket of 100 stocks, with an expense ratio of 0.85%; down 15.1% year-to-date.
  • Rydex Russell Top 50 (XLG): Has a basket of 50 stocks and an expense ratio of 0.20%; down 12.2% year-to-date.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.