SPDR Dow Jones Large Cap ETF (NYSEARCA:ONEK) Outperforms The Tracking Index


Dallas, Texas 11/08/2013 (Financialstrend) – The exchange traded fund SPDR Dow Jones Large Cap ETF (NYSEARCA:ONEK) operates on the philosophy of bringing in returns and appreciation from investments which are in line with the returns notched up by Russell 1000 index. The fund as part of its strategy targets 80% of its investment into companies tracked by Russell 1000 index. The Russell 1000 Index tracks the returns posted by the top large-cap companies which are traded on the U.S. equity market. This list of top companies are handpicked from the bigger tracking list of Russell 3000® Index. Readers would be interested to note that the total market capitalization of the companies tracked by the index adds up to more than 92% of the total U.S. equity market. During trading in the past one month the index has posted 3.49% where as the ETF has posted 6.1% in the same period.

The firm has paid out dividend of $1.56 over the past 12 months leading to a dividend yield of 1.88%. In the same period the market value of the stock has appreciated by 28.9%. Investors who had bought the ETF six months back would have seen their investments grow by 10% while in the last week it has struggled to post positive results. Its net assets are in the range of $39.7 million.

As of close of business on November 7, the share has been trading at $82.9 per share down slightly from its previous day close. At current valuations the share price is just 0.8% below its 52 week high pricing of $83.58 per share. In spite of the solid market pricing, the shares of this ETF have been attracting extremely low transaction volumes. Case in point is yesterday when only 123 transactions were recorded as against the daily trading average of 940 transactions.

Investors would be hoping that the fund continues to outperform the index going forward too.