Is SLYV the Small Cap Value ETF Worth Adding to Your Portfolio?

Looking for a cost-effective way to access the small cap value sector? The State Street SPDR S&P 600 Small Cap Value ETF (SLYV) might deserve a closer look. Since its launch in 2000, this passively managed fund has grown to over $4.19 billion in assets, establishing itself as a major player among smallcap ETF options tracking this market segment.

Understanding Small Cap Value Investing

Small cap stocks—companies with market capitalizations between $250 million and $1.2 billion—offer higher growth potential but come with increased volatility. Value-oriented small caps are particularly interesting because they typically trade at lower price-to-earnings and price-to-book multiples compared to their growth counterparts. Historically, value stocks have delivered superior long-term returns across most markets, though they tend to underperform during bull market rallies.

Track Record and Risk Profile

Year-to-date, SLYV has returned approximately 7.78%, with a one-year gain of about 3.39% (through December 18, 2025). The fund trades within a 52-week range of $67.03 to $94.78. With a beta of 1.03 and a three-year standard deviation of 21.74%, this smallcap ETF sits in the medium-risk category. The fund’s 458 holdings effectively distribute company-specific risk across numerous positions.

Cost Efficiency and Income

Expense ratios matter significantly in ETF selection. SLYV charges just 0.15% annually in operating expenses, positioning it among the cheapest offerings in the small cap value space. Additionally, the fund provides a trailing 12-month dividend yield of 2.08%, offering a modest income stream alongside potential capital appreciation.

Portfolio Composition and Sector Breakdown

The largest sector allocation goes to Financials at roughly 22% of the portfolio, followed by Information Technology and Consumer Discretionary. Among individual holdings, Borgwarner Inc (BWA) represents about 1.28% of assets, with Hecla Mining Co (HL) and Qorvo Inc (QRVO) also featuring prominently. The top 10 holdings collectively account for approximately 9.68% of assets under management.

How SLYV Compares to Alternatives

SLYV carries a Zacks ETF Rank of 2 (Buy rating), reflecting favorable assessments across expected returns, expenses, and momentum metrics. However, investors should consider similar options: iShares Russell 2000 Value ETF (IWN) holds $12.31 billion in assets with a 0.24% expense ratio, while Vanguard Small-Cap Value ETF (VBR) commands $32.32 billion with a lower 0.07% fee structure.

The Bottom Line

For long-term investors seeking straightforward, low-cost exposure to the small cap value segment, SLYV offers transparency, tax efficiency, and compelling economics. Its combination of reasonable expenses and solid diversification makes it a solid contender among smallcap ETF choices for building a core holding in this market segment.