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].

Citi Research 5 December 2025 US Equity Strategy Size & Style Chartbook Scott T ChronertAC Managing Director scott.t.chronert@citi.com +1 415-951-1771 Drew Pettit Director drew.pettit@citi.com +1 415-951-1621 Patrick Galvin, CFA Vice President patrick.galvin@citi.com +1 212-816-5373 See AppendixA-1 for AnalystCertification, Important Disclosures and ResearchAnalystAffiliations Citi Research is a division of Citigroup Global Markets Inc. (the "Firm"), which does and seeks to do business with companies covere ...

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].

Looking for broad exposure to the Large Cap Value segment of the US equity market? You should consider the State Street SPDR Portfolio S&P 500 High Dividend ETF (SPYD) , a passively managed exchange traded fund launched on October 21, 2015.The fund is sponsored by State Street Investment Management. It has amassed assets over $7.32 billion, making it one of the larger ETFs attempting to match the Large Cap Value segment of the US equity market.Why Large Cap ValueCompanies that find themselves in the large c ...

Core Viewpoint - The Invesco Large Cap Value ETF (PWV) is a passively managed fund aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $1.20 billion, positioning it as an average-sized ETF in this category [1]. Group 1: Fund Overview - Launched on March 3, 2005, PWV is designed to track the performance of the Large Cap Value segment [1]. - The fund is sponsored by Invesco and has accumulated over $1.20 billion in assets [1]. Group 2: Investment Characteristics - Large cap companies, defined as those with market capitalizations above $10 billion, are generally 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 growth stocks tend to excel in strong bull markets [3]. Group 3: Costs and Performance - The annual operating expense ratio for PWV is 0.53%, which is relatively high compared to other ETFs, and it has a 12-month trailing dividend yield of 2.22% [4]. - As of September 12, 2025, PWV has gained approximately 15.75% year-to-date and 17.11% over the past year, with a trading range between $52.26 and $64.99 in the last 52 weeks [7]. Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 31.5% of the portfolio, followed by Energy and Healthcare [5]. - Goldman Sachs Group Inc. is the largest holding at approximately 3.76% of total assets, with the top 10 holdings accounting for about 35.09% of total assets under management [6]. Group 5: Risk Profile - PWV has a beta of 0.82 and a standard deviation of 14.35% over the trailing three-year period, indicating a medium risk profile [8]. - The ETF consists of about 52 holdings, which helps to diversify company-specific risk [8]. Group 6: Alternatives - PWV carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Large Cap Value segment [9]. - Alternative ETFs in this space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have significantly larger asset bases and lower expense ratios of 0.06% and 0.04%, respectively [10]. Group 7: Conclusion - Passively managed ETFs like PWV are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11].

Core Viewpoint - The Pacer US Cash Cows 100 ETF (COWZ) is a large-cap value ETF that has gained significant assets and aims to provide broad exposure to the large-cap value segment of the US equity market [1] Group 1: ETF Overview - Launched on December 16, 2016, COWZ has amassed over $19.57 billion in assets, making it one of the largest ETFs in its category [1] - The ETF is passively managed and designed to match the performance of the Pacer US Cash Cows 100 Index, which targets large and mid-cap U.S. companies with high free cash flow yields [7] Group 2: Investment Characteristics - Large-cap companies typically have market capitalizations above $10 billion and are known for their stability and predictable cash flows [2] - Value stocks, which COWZ focuses on, generally have lower price-to-earnings and price-to-book ratios, but they have historically outperformed growth stocks in the long term [3] Group 3: Costs and Performance - The ETF has an annual operating expense ratio of 0.49% and a 12-month trailing dividend yield of 2.07% [4] - COWZ has gained approximately 2.8% year-to-date and 6.16% over the past year, with a trading range between $47.46 and $61.35 in the last 52 weeks [7] Group 4: Sector Exposure and Holdings - The ETF has a significant allocation to the Healthcare sector, comprising about 20.1% of the portfolio, followed by Energy and Information Technology [5] - Nike Inc (NKE) is the largest individual holding at approximately 2.17% of total assets, with the top 10 holdings accounting for about 20.95% of total assets under management [6] Group 5: Alternatives and Market Position - COWZ carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the large-cap value segment [9] - Other comparable ETFs include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios [10] Group 6: Investor Appeal - Passively managed ETFs like COWZ are increasingly favored by retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]

Core Viewpoint - The iShares Select Dividend ETF (DVY) is a large-cap value ETF that aims to provide broad exposure to the U.S. equity market, with significant assets under management and a focus on dividend-paying stocks [1][7]. Group 1: Fund Overview - Launched on November 3, 2003, DVY is designed to match the Large Cap Value segment of the U.S. equity market and is sponsored by Blackrock [1]. - The fund has amassed over $20.75 billion in assets, making it one of the largest ETFs in its category [1]. Group 2: Investment Characteristics - Large-cap companies typically have market capitalizations above $10 billion and are characterized by stability and predictable cash flows [2]. - Value stocks, which DVY 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 - The annual operating expenses for DVY are 0.38%, which is competitive within its peer group, and it has a 12-month trailing dividend yield of 3.63% [4]. - As of September 2, 2025, DVY has gained approximately 9.79% year-to-date and 9.65% over the past year, with a trading range of $118.37 to $143.41 in the last 52 weeks [8]. Group 4: Sector Exposure and Holdings - DVY has a significant allocation to the Financials sector, comprising about 26.5% of the portfolio, followed by Utilities and Consumer Staples [5]. - The top 10 holdings account for approximately 19.18% of total assets, with Altria Group Inc, Ford Motor Co, and Verizon Communications Inc being notable individual holdings [6]. Group 5: Alternatives and Market Position - DVY carries a Zacks ETF Rank of 3 (Hold), indicating a reasonable option for investors seeking exposure to the Large Cap Value area [9]. - Other comparable ETFs include Schwab U.S. Dividend Equity ETF (SCHD) and Vanguard Value ETF (VTV), which have larger asset bases and lower expense ratios [10]. Group 6: Conclusion - Passively managed ETFs like DVY are favored by both institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency [11].

Core Insights - The iShares Core High Dividend ETF (HDV) is a passively managed fund launched on March 29, 2011, with assets exceeding $11.67 billion, focusing on the Large Cap Value segment of the US equity market [1] - 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, and while they have outperformed growth stocks in the long term, they may underperform during strong bull markets [3] Costs - The ETF has an annual operating expense ratio of 0.08%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 3.29% [4] Sector Exposure and Top Holdings - The ETF has a significant allocation to the Healthcare sector at approximately 22.9%, followed by Energy and Consumer Staples [5] - Exxon Mobil Corp (XOM) constitutes about 8.29% of total assets, with the top 10 holdings representing around 50.64% of total assets under management [6] Performance and Risk - HDV aims to match the performance of the Morningstar Dividend Yield Focus Index, which includes high-quality U.S. companies with strong financial health and sustainable dividend payouts [7] - The ETF has gained about 11.43% year-to-date and approximately 8.22% over the past year, with a trading range between $108.41 and $123.66 in the last 52 weeks [7] - With a beta of 0.64 and a standard deviation of 13% over the trailing three years, HDV is classified as a medium-risk investment [8] Alternatives - HDV carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to the Large Cap Value market [9] - Other comparable ETFs include Schwab U.S. Dividend Equity ETF (SCHD) with $72.51 billion in assets and Vanguard Value ETF (VTV) with $143.81 billion, with expense ratios of 0.06% and 0.04% respectively [10] Bottom-Line - Passively managed ETFs like HDV are increasingly popular among retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [11]

Core Viewpoint - The Goldman Sachs MarketBeta Russell 1000 Value Equity ETF (GVUS) is a newly launched passively managed ETF aimed at providing broad exposure to the Large Cap Value segment of the US equity market, with assets exceeding $360.01 million [1]. Group 1: ETF Overview - GVUS was launched on November 28, 2023, and is sponsored by Goldman Sachs Funds [1]. - The ETF has an annual operating expense of 0.12%, making it one of the least expensive options in its category [4]. - It has a 12-month trailing dividend yield of 1.91% [4]. Group 2: Market Characteristics - Large cap companies typically have a market capitalization above $10 billion and are considered stable with lower risk compared to mid and small cap companies [2]. - Value stocks generally exhibit lower price-to-earnings and price-to-book ratios, but they have historically outperformed growth stocks in most markets over the long term [3]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Financials sector, comprising about 22.6% of the portfolio, followed by Industrials and Healthcare [5]. - Berkshire Hathaway Inc (BRK/B) is the largest individual holding at approximately 3.14% of total assets, with Jpmorgan Chase & Co (JPM) and Amazon.com Inc (AMZN) also among the top holdings [6]. Group 4: Performance Metrics - GVUS aims to match the performance of the Russell 1000 Value 40 Act Daily Capped Index, which measures large and mid-capitalization value stocks [7]. - The ETF has gained about 9.35% year-to-date and approximately 9.87% over the past year, with a trading range between $42.82 and $51.80 in the last 52 weeks [7]. - It has a beta of 0.84 and a standard deviation of 13.86% over the trailing three-year period, indicating effective diversification of company-specific risk with around 869 holdings [8]. Group 5: Alternatives and Market Position - GVUS holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Large Cap Value segment [9]. - Other comparable ETFs include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), which have significantly larger asset bases of $72.08 billion and $143.10 billion, respectively [10].

Core Insights - The Vanguard Mega Cap Value ETF (MGV) is a passively managed fund launched on December 17, 2007, with assets exceeding $9.86 billion, targeting the Large Cap Value segment of the US equity market [1][10] - Large cap companies, defined as those with market capitalizations above $10 billion, are considered more stable with predictable cash flows and lower volatility 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; historically, they have outperformed growth stocks in most markets, although they may underperform during strong bull markets [3] Costs - The ETF has an annual operating expense ratio of 0.07%, making it one of the least expensive options in its category, with a 12-month trailing dividend yield of 2.08% [4] Sector Exposure and Top Holdings - The ETF has a significant allocation to the Financials sector, comprising approximately 28% of the portfolio, followed by Healthcare and Industrials [5] - Jpmorgan Chase & Co (JPM) represents about 4.71% of total assets, with the top 10 holdings accounting for around 24.26% of total assets under management [6] Performance and Risk - MGV aims to match the performance of the CRSP U.S. Mega Cap Value Index, which measures the performance of mega-cap value stocks in the US; the ETF has gained about 9.25% year-to-date and 10.98% over the past year as of August 25, 2025 [7] - The ETF has a beta of 0.79 and a standard deviation of 13.53% over the trailing three-year period, indicating a medium risk profile with effective diversification across 126 holdings [8] Alternatives - Other ETFs in the same space include the Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Value ETF (VTV), with SCHD having $72.51 billion in assets and VTV at $144.09 billion; their expense ratios are 0.06% and 0.04%, respectively [11] Bottom-Line - Passively managed ETFs like MGV are favored by both institutional and retail investors for their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [12]