An Active Approach to Value ETFs

Exchange traded funds emphasizing the value factor have been laggards this year, but that does not mean this ETF genre is bereft of opportunity for investors.

In the case of the SPDR MFS Systematic Value ETF (NYSEArca: SYV), active management is helping this value ETF excel this year. Year-to-date, SYV is up 2.7%, well ahead of the 4.8% lost by the S&P 500.

SYV is issued by State Street’s (NYSE: STT) State Street Global Advisors in partnership with asset management giant MFS Investment Management. Two other actively managed ETFs are included in the State Street/MFS suite. The selection process behind the ETFs is combination of fundamental and quantitative research, courtesy of MFS.

Although some of the largest asset managers and mutual fund issuers have filed plans with regulators to roll out actively managed ETFs, in many cases, those funds have not seen the light of day. In what appears to be a growing trend, some asset managers that have previously not been directly involved in ETFs but find the industry’s exponential growth too compelling to ignore are partnering with established ETF providers. [New ETFs From State Street, MFS]

SYV’s goal is to top the Russell 1000 Growth Index.