What is a low-volatility ETF?

A low-volatility ETF tracks stocks with smaller price swings than the broader market. These funds aim to reduce downside risk by selecting companies with more stable earnings and prices. LGLV targets US large-cap stocks with lower volatility, while SPLV focuses on S&P 500 companies meeting similar criteria. Both funds hold stocks like Duke Energy that typically show steadier performance. Investors choose such ETFs to balance portfolio risk, though past stability does not guarantee future outcomes. These funds often include defensive sectors like utilities and consumer staples.

How do expense ratios affect returns?

The expense ratio is the annual fee deducted from an ETF's assets. LGLV charges 0.12%, which is 0.13 percentage points lower than SPLV's 0.25%. Over ten years, this small difference compounds, resulting in slightly higher net returns for LGLV investors. Fees are automatically subtracted from the fund's performance, not charged separately. A lower fee means more of the gross investment return remains in your pocket. For every $10,000 invested, LGLV saves approximately $13 annually in fees compared to SPLV. Always compare expense ratios when evaluating similar ETFs.

What does category mean for ETFs?

The category shows the fund's primary focus. LGLV is classified as 'Large Blend', mixing growth and value characteristics in large companies. SPLV is 'Large Value', concentrating on undervalued large firms. This difference influences which stocks each fund selects. Large Blend may include stable blue-chip companies regardless of valuation, while Large Value specifically targets cheaper stocks. Categories help investors understand the fund's strategy before examining holdings. Neither category is inherently better; they simply apply different selection criteria within the low-volatility approach, reflecting the fund's objective to minimise price fluctuations.

How do holdings differ between LGLV and SPLV?

LGLV includes Welltower at 4.49%, indicating a strong real estate tilt, while SPLV holds Berkshire Hathaway at 1.41%. Both funds share Duke Energy in their top ten holdings, reflecting common exposure to stable utilities. LGLV's average top ten holding weight is 1.56%, slightly more concentrated than SPLV's 1.31%. This means SPLV spreads risk more evenly across its largest positions. The distinct top holdings reveal different low-volatility interpretations—LGLV emphasises specific defensive sectors while SPLV balances across a broader corporate value base, affecting overall portfolio characteristics and risk exposure.

What does fund size matter?

Fund size influences trading efficiency. SPLV has $7.2 billion in assets, six times larger than LGLV's $1.2 billion. Larger funds typically offer better liquidity, meaning investors can buy or sell shares quickly without significantly moving the price. LGLV's smaller size might lead to slightly wider bid-ask spreads. However, both funds are actively traded ETFs, so daily liquidity remains sufficient for most investors. Size also affects ability to hold smaller positions without disproportionate impact on the portfolio. Generally, larger assets provide marginal operational advantages, though they don't directly influence investment performance.

Why do dividend yields differ?

SPLV offers a 2.28% dividend yield, marginally higher than LGLV's 2.17%. This difference of 0.11 percentage points stems from their distinct holdings. LGLV includes Welltower and other REITs that distribute income differently than SPLV's utility and financial stocks like Federal Energy and American Tower. ETFs pass through dividends received from underlying companies. Higher yields don't necessarily mean better total returns, as price movements significantly influence overall performance. These differences reflect each fund's portfolio construction and sector allocation, with income generation being one factor among several when comparing low-volatility strategies for long-term planning.

Which fund suits defensive investing?

Both funds serve defensive investing goals through low-volatility selection. LGLV's category of 'Large Blend' may appeal to investors seeking balanced stability across market cycles, while SPLV's 'Large Value' approach targets undervalued defensive stocks. Neither fund promises protection in every market downturn. Investors often use low-volatility ETFs to reduce portfolio fluctuations during uncertain periods. The choice depends on whether you prefer broader large-cap stability or value-focused defensive stocks. Both provide exposure to established companies with steadier earnings histories, offering alternatives to growth-oriented equity funds for risk-averse portfolio management strategies.

How do low-volatility funds perform in different markets?

Low-volatility ETFs typically outperform during market declines by selecting stocks with smaller historical price swings. In rising markets, they may underperform more aggressive growth funds. Both LGLV and SPLV hold defensive sectors like utilities—Duke Energy appears in their top ten holdings. This sector exposure provides stable cash flows during economic uncertainty. However, in strong bull markets, technology and growth stocks often dominate, leaving low-volatility funds behind. Their advantage appears when volatility spikes, offering investors relatively smoother portfolio experiences through carefully selected, less volatile large-cap stocks across market conditions.

What sectors do these funds overweight?

While specific sector weights aren't provided, the top holdings reveal clear tilts. LGLV features significant healthcare exposure with Welltower at 4.49% and Johnson & Johnson at 1.09%, plus consumer staples like Coca-Cola at 1.22%. SPLV heavily emphasises utilities with Federal Energy at 1.27%, Duke Energy at 1.27%, WEC at 1.27%, Evergy at 1.26%, and Consolidated Edison at 1.24%. These defensive sectors—utilities, healthcare, consumer staples—typically show more stable revenues, aligning with low-volatility objectives. The distinct sector balances reflect different approaches to selecting market segments with historically smoother performance patterns.

Why is transparency important?

Transparency helps investors assess fund reliability. LGLV's issuer is SPDR, a well-known provider, but its index tracking is not available. SPLV's issuer is not available in the data, which limits understanding of fund management quality. Clear methodology information allows investors to verify if the fund follows its stated low-volatility approach. Without complete transparency, evaluating consistency becomes challenging. Investors should consult official prospectuses for full details on index construction, rebalancing frequency, and volatility measurement criteria, ensuring alignment between stated strategy and actual portfolio composition in these ETFs.

What costs should investors watch?

Beyond the expense ratio, investors should note bid-ask spreads and trading commissions. LGLV's $1.2 billion net assets might result in slightly wider spreads than SPLV's $7.2 billion, though both are actively traded. The 0.13 percentage point annual fee difference means LGLV costs $13 less per $10,000 invested yearly. Remember that ETFs can trade at premiums or discounts to net asset value during volatile periods. Always compare the total cost of ownership, including potential brokerage commissions if you're trading in small amounts that trigger minimum fees rather than percentage-based costs.

Disclaimer and educational purpose

This information is strictly educational and not financial advice. Figures presented come from publicly available data and may not reflect current holdings or prices. ETF investments involve risk, including possible loss of principal. Low-volatility strategies don't guarantee protection in all market conditions. Always conduct your own research or consult a qualified financial adviser before investing. Past performance, such as LGLV's inception in 2013 and SPLV's in 2011, does not predict future returns. Data used here may have limitations, as sector weights and index details were not available.

LGLV vs SPLV

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare SPDR US Large Cap Low Volatility ETF and S&P 500 Low Volatility ETF PowerShares. This page examines their fees, holdings and dividends, and how each fund tracks its market. LGLV has a 0.12% expense ratio, while SPLV is 0.25%. Both hold utilities such as Duke Energy. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

Metric

0.12%

Expense Ratio

0.25%

2.17%

Dividend Yield

2.28%

$1.19B

Net Assets

$7.19B

172

Holdings

107

Feb 20, 2013

Inception Date

May 5, 2011

–

Index Tracked

–

Large Blend

Fund Category

Large Value

LGLV costs about $13.00 less per year for every $10,000 invested.

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Investment Analysis

LGLV

Pros

The fund has a lower expense ratio of 0.12%, which reduces costs relative to its 0.25% counterpart.
Fund B's top holdings have an average weight of 1.31%, providing better diversification than LGLV's 1.56% average.
LGLV features a 4.49% weighting in WELL, potentially offering a unique large-cap low-volatility factor.

Considerations

With net assets of $1.2 billion, LGLV is significantly smaller than Fund B's $7.2 billion size.
The dividend yield of 2.17% is marginally lower than Fund B's 2.28% income generation.
The index tracked is not available, which could make methodology transparency and consistency harder to assess.

SPLV

Pros

At $7.2 billion in net assets, the fund's larger size supports better trading liquidity.
With a 2.28% dividend yield, Fund B offers marginally higher income distribution compared to LGLV.
Fund B's more balanced portfolio, with top holdings averaging 1.31%, indicates potentially greater diversification.

Considerations

The expense ratio is 0.25%, which is more expensive than LGLV's 0.12% fee structure.
The issuer is not available, meaning information about the fund provider's reputation is limited.
The fund has a large tilt towards utilities and consumer staples, resulting in less sector diversification.

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About LGLV and SPLV

LGLV (LGLV)

The SPDR US Large Cap Low Volatility ETF aims to track the total return performance of a specific index of US large-cap stocks known for lower volatility. Designed for investors seeking exposure to established US companies while potentially reducing market swings, this fund holds approximately 172 holdings. With a net asset value of USD 1.19 billion, it offers moderate liquidity. The fund charges a competitive expense ratio of 0.12% and has maintained a dividend yield of 2.17%. Since its inception in February 2013, it has provided a way to invest in large-cap equities with a focus on risk management through lower volatility characteristics. Remember that all investments carry risk, and values can fluctuate.

SPLV (SPLV)

SPLV (Invesco S&P 500® Low Volatility ETF) is an exchange-traded fund that seeks to offer S&P 500 exposure with reduced price swings. The fund tracks a rules-based index that selects stocks from the S&P 500 with lower historical volatility and weights them to favour more stable names. Investors often consider SPLV when they want equity market participation but hope for a smoother ride compared with the full S&P 500. It can act as a defensive sleeve within a diversified portfolio, but it is still subject to market risk — returns can fall and are not guaranteed. SPLV’s strategy may underperform in strong bull markets where higher-volatility stocks lead, and its sector and factor tilts can differ from the broad market. Suitable for investors seeking lower short‑term volatility and prepared for equity risk over the medium to long term, it is educational to compare fees, tracking error and holdings before investing.

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LGLV vs SPLV

Fund Snapshot

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Investment Analysis

LGLV

Pros

Considerations

SPLV

Pros

Considerations

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Buy LGLV or SPLV in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is a low-volatility ETF?

How do expense ratios affect returns?

What does category mean for ETFs?

How do holdings differ between LGLV and SPLV?

What does fund size matter?

Why do dividend yields differ?

Which fund suits defensive investing?

How do low-volatility funds perform in different markets?

What sectors do these funds overweight?

Why is transparency important?

What costs should investors watch?

Disclaimer and educational purpose

Discover More Comparisons

LVHD vs SPLV

SPHD vs SPLV

About LGLV and SPLV

Which Baskets Do They Appear In?

Flight to Safety Assets | Fed Uncertainty Overview

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Fund Snapshot

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