AlexSecret/E+ via Getty Images The following segment was excerpted from the Goldman Sachs Large Cap Value Fund Q4 2025 Commentary. Portfolio Attribution During the fourth quarter of 2025, the Goldman Sachs Large Cap Value Fund underperformed the Russell 1000 Value ...

Core Viewpoint - The Vanguard Mega Cap Value Index Fund ETF Shares (MGV) is a passively managed ETF that provides broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $11.69 billion, making it one of the larger ETFs in this category [1]. Group 1: Fund Overview - MGV was launched on December 17, 2007, and is sponsored by Vanguard [1]. - The fund targets companies with a market capitalization above $10 billion, which are typically stable with predictable cash flows [2]. Group 2: Value Stocks Characteristics - Value stocks, which MGV focuses on, have lower than average price-to-earnings and price-to-book ratios, as well as lower sales and earnings growth rates [3]. - Historically, value stocks have outperformed growth stocks in long-term performance, although growth stocks may perform better in strong bull markets [3]. Group 3: Cost and Performance - MGV has annual operating expenses of 0.05%, making it one of the least expensive ETFs in its category, with a 12-month trailing dividend yield of 1.89% [4]. - The ETF has gained approximately 8.18% year-to-date and 17.39% over the past year, with a trading range between $114.87 and $153.25 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector at about 23.6%, followed by Healthcare and Industrials [5]. - Jpmorgan Chase & Co (JPM) constitutes about 4.72% of total assets, with the top 10 holdings accounting for approximately 18.63% of total assets under management [6]. Group 5: Risk and Diversification - MGV seeks to match the performance of the CRSP U.S. Mega Cap Value Index and has a beta of 0.76, indicating medium risk, with a standard deviation of 12.03% over the trailing three-year period [8]. - The fund holds about 126 different stocks, effectively diversifying company-specific risk [8]. Group 6: Alternatives and Market Position - MGV holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong potential based on expected returns, expense ratio, and momentum [10]. - Other ETFs in the same space include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value Index Fund ETF Shares (VTV), with SCHD having $86.02 billion in assets and VTV at $170.92 billion [11].

Core Viewpoint - The Vanguard S&P 500 Value Index Fund ETF Shares (VOOV) is a passively managed ETF aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $6.22 billion, making it one of the larger ETFs in this category [1]. Group 1: Fund Overview - Launched on September 9, 2010, VOOV is designed to match the performance of the S&P 500 Value Index [1][7]. - The ETF has an annual operating expense ratio of 0.07%, positioning it as one of the least expensive options in the market [4]. - It has a 12-month trailing dividend yield of 1.68% [4]. Group 2: Market Characteristics - Large cap companies, with market capitalizations above $10 billion, are considered more stable and exhibit predictable cash flows, making them less volatile compared to mid and small cap companies [2]. - Value stocks, characterized by lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 16.5% of the portfolio, followed by Financials and Healthcare [5]. - Apple Inc (AAPL) represents approximately 7.39% of total assets, with the top 10 holdings accounting for about 18.12% of total assets under management [6]. Group 4: Performance Metrics - As of March 3, 2026, VOOV has increased by about 4.68% year-to-date and is up roughly 14.36% over the past year [7]. - The ETF has traded between $162.65 and $214.75 in the past 52 weeks [7]. - With a beta of 0.86 and a standard deviation of 12.81% over the trailing three-year period, it is classified as a medium risk investment [8]. Group 5: Alternatives and Market Position - VOOV holds a Zacks ETF Rank of 1 (Strong Buy), indicating strong expected returns based on various factors [9]. - Other comparable ETFs include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value Index Fund ETF Shares (VTV), with assets of $86.02 billion and $170.92 billion respectively, and lower expense ratios of 0.06% and 0.03% [10]. Group 6: Investment Appeal - Passively managed ETFs like VOOV are gaining popularity among both institutional and retail investors due to their low cost, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].

Core Viewpoint - The Harbor Large Cap Value Fund underperformed its benchmark in Q4 2025, indicating challenges in achieving competitive returns compared to the broader market [4]. Group 1: Portfolio Performance - The Harbor Large Cap Value Fund (Institutional Class) returned 1.26% in the fourth quarter [4]. - The benchmark, the Russell 1000® Value Index, achieved a return of 3.81% during the same period [4].

Core Insights - In Q1 2026, Large Cap Value, Large Cap Blend, and Mid Cap Growth investment styles received an Attractive-or-better rating, indicating strong performance potential in these categories [1]. Group 1 - The style ratings are derived from a normalized aggregation of fund ratings for all ETFs and mutual funds [1].

Core Viewpoint - The State Street SPDR Russell 1000 Yield Focus ETF (ONEY) is a passively managed ETF aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $841.87 million, positioning it as an average-sized ETF in this category [1]. Group 1: Large Cap Value Characteristics - Large cap companies generally have a market capitalization above $10 billion, characterized by stability and predictable cash flows, making them less volatile compared to mid and small cap companies [2]. - Value stocks, while having lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although they may underperform during strong bull markets [3]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.2%, categorizing it as one of the cheaper options in the market, and it offers a 12-month trailing dividend yield of 3.12% [4]. - As of December 29, 2025, the ETF has gained approximately 8.66% year-to-date and 7.51% over the past year, with a trading range between $95.52 and $116.46 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF's largest allocation is to the Industrials sector, comprising about 13.7% of the portfolio, followed by Consumer Staples and Financials [5]. - United Parcel Service Cl B (UPS) represents about 2.23% of total assets, with the top 10 holdings accounting for approximately 13.67% of total assets under management [6]. Group 4: Investment Strategy and Alternatives - The ETF aims to match the performance of the Russell 1000 Yield Focused Factor Index, which includes large-cap U.S. equity securities with high value, high quality, and low size characteristics, focusing on high yield [7]. - Alternatives to this ETF include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which track similar indices but have significantly larger asset bases and lower expense ratios [11]. Group 5: Overall Market Position - The ETF holds a Zacks ETF Rank of 3 (Hold), indicating it is a reasonable option for investors seeking exposure to the Large Cap Value segment of the market [10]. - Passively managed ETFs like ONEY are increasingly popular due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investors [12].

Core Viewpoint - The State Street SPDR S&P Dividend ETF (SDY) is a significant player in the Large Cap Value segment of the US equity market, with over $20.21 billion in assets, making it one of the largest ETFs in this category [1]. Group 1: Large Cap Value Overview - Large cap companies are defined as those with a market capitalization above $10 billion, offering more stability and predictable cash flows compared to mid and small cap companies [2]. - Value stocks, characterized by lower price-to-earnings and price-to-book ratios, have historically outperformed growth stocks in most markets, although they may lag in strong bull markets [3]. Group 2: Costs and Performance - The annual operating expenses for SDY are 0.35%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 2.58% [4]. - SDY aims to replicate the performance of the S&P High Yield Dividend Aristocrats Index, which includes companies that have consistently increased dividends for at least 20 consecutive years [7]. - The ETF has achieved a gain of approximately 9.01% year-to-date and 4.3% over the past year, with a trading range between $121.58 and $142.97 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Industrials sector, comprising about 19.6% of the portfolio, followed by Consumer Staples and Utilities [5]. - Verizon Communications Inc (VZ) is the largest individual holding at approximately 2.51% of total assets, with the top 10 holdings accounting for about 18.84% of total assets under management [6]. Group 4: Alternatives and Market Position - SDY holds a Zacks ETF Rank of 3 (Hold), indicating a sufficient option for investors seeking exposure to the Large Cap Value segment [10]. - Alternatives such as the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV) are also available, with SCHD having $71.54 billion in assets and VTV at $157.75 billion, both offering lower expense ratios [11]. Group 5: Investor Trends - There is a growing trend among retail and institutional investors towards passively managed ETFs due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12].

Summary of the US Equity Strategy Conference Call Industry Overview - The report focuses on the US equity market, particularly the performance of large-cap, mid-cap, and small-cap stocks as well as growth and value styles within these categories [3][6]. Key Points Performance Insights - Large Cap and Large Cap Growth have shown year-to-date (YTD) outperformance due to fundamental improvements [3][6]. - Small Cap, especially Small Cap Value, is identified as the most inefficiently priced segment, with expected earnings growth that contrasts sharply with the past three years [3][6]. - There has been minimal style performance differentiation within the SMID (Small and Mid Cap) segment this year [3][6]. Capital Expenditure and Buybacks - Large Cap capital expenditures (capex) are on the rise, with a notable shift where incremental cash flow is increasingly directed towards growth capex rather than buybacks [3][6]. - Aggregate buybacks remain robust across the size spectrum, but Small Cap buybacks are not keeping pace with rising stock-based compensation [6]. Valuation Trends - Large Cap valuations are in the top decile compared to historical data, with both Growth and Value styles trading at high multiples relative to their own histories [6]. - In contrast, Small and Mid Cap valuations are less demanding, with Small Cap being considered inexpensive compared to its historical valuations [6]. Earnings Growth Expectations - Consensus forward growth expectations indicate an acceleration for Small and Mid Cap stocks in the upcoming year, which is a significant shift from previous years [6]. - Earnings growth projections for the S&P 500, S&P 400, and S&P 600 show varied trends, with Small Cap expected to see a 6% growth in 2026, while Large Cap is projected at 14% [37][55]. Sector Performance - The report highlights sector-specific earnings growth projections, with notable expectations for Information Technology and Financials, while sectors like Energy and Health Care are projected to face challenges [56][58]. Conclusion - The overall sentiment is that Large Cap stocks are in a "prove it" mode, while Small and Mid Cap stocks are in a "show me" mode, indicating a cautious but optimistic outlook for the broader market as it heads into 2026 [3][6]. Additional Important Insights - The report emphasizes the importance of economic growth as a critical backdrop for performance in 2026 [6]. - The analysis suggests that investors are currently paying a premium for Large Cap earnings, while Mid and Small Caps are seen as having more potential for upside given their current valuations [6].

Core Viewpoint - The State Street SPDR Portfolio S&P 500 Value ETF (SPYV) is a large-cap value ETF that provides broad exposure to the U.S. equity market, with significant assets under management and low operating costs [1][4]. Group 1: ETF Overview - Launched on September 25, 2000, SPYV has amassed over $31.56 billion in assets, making it one of the largest ETFs in the large-cap value segment [1]. - The ETF is passively managed and aims to match the performance of the S&P 500 Value Index [7]. Group 2: Investment Characteristics - Large-cap companies, with market capitalizations above $10 billion, are considered more stable and less volatile compared to mid and small-cap companies [2]. - Value stocks typically have lower price-to-earnings and price-to-book ratios, but also exhibit lower sales and earnings growth rates [3]. Group 3: Costs and Performance - SPYV has an annual operating expense ratio of 0.04%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 1.83% [4]. - The ETF has gained approximately 12.14% year-to-date and 5.1% over the past year, with a trading range between $45.11 and $56.88 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 26.4% of the portfolio, followed by Financials and Healthcare [5]. - Apple Inc. accounts for approximately 7.84% of total assets, with the top 10 holdings representing about 29.52% of total assets under management [6]. Group 5: Risk Profile - SPYV has a beta of 0.86 and a standard deviation of 13.28% over the trailing three-year period, indicating a medium risk profile [8]. Group 6: Alternatives - Other ETFs in the large-cap value space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), with assets of $70.71 billion and $152.51 billion respectively [10].

Core Viewpoint - The State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) is a significant player in the Large Cap Value segment of the US equity market, with over $7.32 billion in assets and a focus on high dividend-paying stocks [1][10]. Group 1: ETF Overview - SPYD is a passively managed ETF launched on October 21, 2015, sponsored by State Street Investment Management [1]. - The ETF aims to match the performance of the S&P 500 High Dividend Index, which includes the top 80 dividend-paying securities based on yield [7]. Group 2: Investment Characteristics - Large cap companies typically have market capitalizations above $10 billion, offering more stability and reliable cash flows compared to mid and small cap companies [2]. - Value stocks, which SPYD focuses on, generally have lower price-to-earnings and price-to-book ratios, and while they have lower sales and earnings growth rates, they have historically outperformed growth stocks in most markets [3]. Group 3: Costs and Performance - SPYD has an annual operating expense ratio of 0.07%, making it one of the least expensive ETFs in its category, with a 12-month trailing dividend yield of 4.48% [4]. - The ETF has added approximately 4.23% year-to-date and is down about 3.56% over the past year, with a trading range between $38.81 and $46.43 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Real Estate sector, comprising about 21.7% of the portfolio, followed by Consumer Staples and Financials [5]. - CVS Health Corp (CVS) represents about 1.66% of total assets, with the top 10 holdings accounting for approximately 14.58% of total assets under management [6]. Group 5: Risk and Alternatives - SPYD has a beta of 0.85 and a standard deviation of 15.23% over the trailing three-year period, indicating a medium risk profile [8]. - Alternatives to SPYD include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have larger asset bases and slightly lower expense ratios [10].