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State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF

SPTM:NYSE

equity ETF | passive | State Street Global Advisors | Tracks S&P Dow Jones Indices

Market Price

US$84.08 (26 Jan 2026)

+12.92% (YoY)

NAV

US$83.68

+0.48% Premium

Yield

1.13%

-8.13% (YoY)

Expense Ratio

3.00%

-93% vs Avg: 45.00%

Box Set (ETF)

⚡ Executive Summary

📊 The Bottom Line

This ETF tracks the S&P Composite 1500 Index, offering comprehensive exposure to large-, mid-, and small-capitalization U.S. equities. With an ultra-low 0.03% expense ratio and tight tracking, SPTM serves as an efficient core holding for broad market access. The bull case projects NAV reaching US$95.00 (+13%) on sustained earnings growth, while the bear case suggests US$75.00 (-10%) due to valuation concerns over 12-18 months.

⚖️ Risk vs Reward

The underlying holdings of SPTM currently trade at a P/E ratio of 28.65x, which is at the higher end of the S&P 500's typical historical range of 21.27x to 29.25x, and notably above its median of 17.99x. This elevated valuation, especially in the technology sector, poses a moderate risk. While the U.S. equity market has demonstrated resilience, a potential deceleration in growth or sustained high interest rates could trigger valuation compression. The diversified nature of SPTM helps mitigate single-stock risk, but the overall market sentiment and economic trajectory will largely dictate its risk-reward profile, with modest upside potential (bull case +13%) versus a more concentrated downside risk (bear case -10%) if market conditions deteriorate. [cite: 8, 13, previous output]

🚀 Why SPTM Could Soar

• Sustained corporate earnings growth across large, mid, and small caps, particularly from resilient technology and consumer discretionary sectors, could drive further equity appreciation. [cite: 1, 8, previous output]
• Improved economic outlook and a 'soft landing' scenario could lead to multiple expansion as investor confidence rises and a potential easing of monetary policy provides tailwinds. [cite: 13, previous output]
• Continued strength in passive investing flows, especially into low-cost, broad-market ETFs like SPTM, ensures consistent demand and efficient pricing.
• Favorable market conditions for the underlying holdings, including robust consumer spending and innovation, support the fund's growth potential.

⚠️ What Could Go Wrong

• Persistent inflation or unexpected hawkish shifts by the Federal Reserve could lead to further valuation compression, especially for growth-oriented sectors. [cite: 13, previous output]
• An economic downturn or recession impacting corporate earnings across all market caps would directly reduce the intrinsic value of the ETF's holdings. [cite: 21, previous output]
• Geopolitical instability or unforeseen market shocks could trigger a broad market sell-off, impacting the fund's performance due to its diversified nature.

🏢 Fund Overview

What Are You Actually Buying

The S&P Composite 1500 Index, tracked by SPTM, provides broad exposure to the U.S. equity market, encompassing large-cap (S&P 500), mid-cap (S&P MidCap 400), and small-cap (S&P SmallCap 600) segments.
This index is float-adjusted market capitalization weighted, meaning larger companies have a proportionally greater impact on the fund's performance. It aims to capture approximately 90% of the investable U.S. equity market.
Companies within this index span all major sectors, including technology, financials, and consumer discretionary, offering a diversified representation of the American economy.

Market Dynamics & Outlook

U.S. equity markets are currently navigating a landscape of moderate economic growth, persistent but moderating inflation, and a cautiously optimistic outlook regarding interest rates. [cite: 19, previous output]
The technology sector, a significant component of the index, continues to drive market performance, although its elevated valuations warrant careful monitoring amidst ongoing innovation cycles. [cite: 8, previous output]
Broader market strength relies on consumer resilience and corporate adaptability to changing macroeconomic conditions, with potential for sector rotations based on economic data. [cite: 19, previous output]
The outlook suggests continued volatility, but with underlying fundamental strengths in many U.S. companies, offering potential for long-term growth, albeit at a slower pace than recent peaks.

🎯 Why This Matters

SPTM offers a simple and low-cost way to gain diversified exposure to the entire spectrum of the U.S. equity market. Understanding the current market dynamics, particularly valuation levels and sector-specific drivers, is crucial for investors evaluating this comprehensive market access point for their portfolios.

📈 Valuation & Analysis

Historical Performance

YTD

+1.43%

+13.92%

Yearly Growth (3Y)

+20.94%

Yearly Growth (5Y)

+13.87%

Yearly Growth (10Y)

+15.56%

Yearly Growth (Since Inception)

+8.50%

Current Valuation

The SPDR Portfolio S&P 1500 Composite Stock Market ETF's underlying holdings currently trade at an aggregate Price/Earnings (P/E) ratio of 28.65x. This is positioned at the upper end of the S&P 500's typical historical range of 21.27x to 29.25x and significantly above its long-term median of 17.99x, suggesting that the market is pricing in strong future growth expectations. The Price/Book (P/B) ratio for the S&P 500, a close proxy for SPTM, stands at 5.44x, which is also above its historical median of 2.88x. [cite: 8, 10, 13, previous output] The current dividend yield for SPTM is 1.13%. While these valuation metrics indicate a richly valued market compared to historical averages, they reflect a period of strong corporate profitability and investor confidence in U.S. equities. Investors should consider these elevated valuations against the backdrop of potential earnings growth and macroeconomic stability.

The Bull Case - Upside to

Robust Corporate Earnings Drive Market Higher

Medium Probability

If U.S. corporate earnings growth continues to outperform expectations (e.g., 10-12% year-over-year for the S&P 1500), the broad market could see an additional 10-15% price appreciation, pushing SPTM's NAV to around US$95.00.

Soft Landing and Federal Reserve Policy Easing

Medium Probability

A 'soft landing' for the economy coupled with anticipated interest rate cuts by the Federal Reserve could lead to multiple expansion across equities, contributing to a 8-10% upside for the fund. [cite: 13, previous output]

Strong Inflows into Passive U.S. Equity ETFs

Probability

Persistent investor demand for low-cost, diversified U.S. equity exposure, exemplified by significant inflows into passive ETFs, could provide a supportive bid for SPTM, adding 3-5% to its market price through enhanced liquidity and slight premium.

The Bear Case - Downside to

Unexpected Economic Downturn or Recession

Low Probability

A sharper-than-expected economic slowdown or recession could lead to a 15-20% decline in corporate earnings, potentially causing a 10-15% drop in SPTM's NAV to approximately US$75.00. [cite: 21, previous output]

Persistent Inflation and Higher-for-Longer Rates

Medium Probability

If inflation remains elevated, forcing the Federal Reserve to maintain higher interest rates, it could trigger valuation compression, particularly for growth stocks, leading to a 7-10% decline in the fund's value. [cite: 13, previous output]

Increased Geopolitical Instability

Probability

Escalating geopolitical tensions could introduce significant market uncertainty and risk-off sentiment, resulting in a broad market correction of 5-8% that would directly impact SPTM.

Risk/Reward Assessment

Considering the current market landscape, SPTM presents a balanced risk-reward profile, leaning slightly towards measured optimism. The bull case highlights the potential for continued upside driven by resilient corporate earnings and a favorable monetary policy environment. However, this is tempered by current elevated valuations, which leave less room for error. Should a 'soft landing' materialize, the fund could see double-digit returns. Conversely, the bear case outlines risks from economic downturns or sustained inflationary pressures. While the diversification inherent in SPTM mitigates extreme single-stock risk, its broad market exposure means it is not immune to systemic shocks. Investors should weigh the probability of a mild recession or prolonged inflation, which could lead to a modest but notable pullback. For long-term investors seeking comprehensive U.S. equity exposure, SPTM remains a solid foundation, but tactical adjustments may be warranted in periods of heightened uncertainty.

Peer Comparison

SPTM offers a highly compelling value proposition within the U.S. total stock market ETF category due to its ultra-low expense ratio, consistent with the cheapest offerings from Vanguard and iShares. It provides broad diversification across market capitalizations, covering approximately 90% of U.S. market capitalization. While its AUM is smaller than some mega-cap peers, SPTM maintains excellent liquidity for efficient trading. Its historical performance has been competitive, with strong risk-adjusted returns over various periods. The key differentiating factor is its precise S&P 1500 index methodology, offering a slightly different blend of large, mid, and small-cap exposure compared to some peers that track alternative total market indices.

Fund	Expense Ratio	AUM (B)	1Y Return	3Y Return	5Y Return	Yield
State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) ⭐	3.00%	US$12.1B	13.92%	20.94%	13.87%	1.13%
Vanguard Total Stock Market ETF (VTI)	3.00%	US$567.0B	16.06%	21.00%	14.00%	1.11%
iShares Core S&P Total U.S. Stock Market ETF (ITOT)	3.00%	US$43.7B	15.50%	20.50%	13.50%	1.10%
Schwab U.S. Broad Market ETF (SCHB)	3.00%	US$38.0B	15.81%	20.80%	13.90%	1.11%

🎯 Why This Matters

Evaluating SPTM's valuation and performance against its peers highlights its position as a highly competitive and cost-effective option for broad U.S. equity exposure. The consistent returns and low expense ratio make it an attractive choice for long-term investors, but understanding its specific index construction and market dynamics is key to aligning it with individual investment goals.

📊 Appendix

Top 10 Holdings (80+ of ETF Value)

#	Ticker	Logo	Name	Sector	Weight
1	NVDA	N	NVIDIA Corp	Technology	7.0%
2	AAPL	A	Apple Inc	Technology	5.7%
3	MSFT	M	Microsoft Corp	Technology	5.2%
4	AMZN	A	Amazon.com Inc	Consumer Cyclical	3.5%
5	GOOGL	A	Alphabet Inc Class A	Communication Services	3.0%
6	GOOG	A	Alphabet Inc Class C	Communication Services	2.4%
7	AVGO	B	Broadcom Inc	Technology	2.4%
8	META	M	Meta Platforms Inc Class A	Communication Services	2.2%
9	TSLA	T	Tesla Inc	Consumer Cyclical	2.0%
10	BRK.B	B	Berkshire Hathaway Inc Class B	Financials	1.4%

Fund Mechanics

How It Works

The State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) is a passively managed exchange-traded fund designed to provide comprehensive exposure to the U.S. equity market. The fund's investment objective is to correspond generally to the total return performance of the S&P Composite 1500 Index. This index is a broad market benchmark that combines the S&P 500 (large-cap), S&P MidCap 400 (mid-cap), and S&P SmallCap 600 (small-cap) indices, covering approximately 90% of the U.S. market capitalization. SPTM employs a 'replication method,' typically optimized sampling, where it invests in a subset of the index's securities to approximate the index's characteristics and performance. The index is float-adjusted market capitalization weighted and rebalanced on a quarterly basis. Constituents are added and removed as needed due to corporate actions or market developments, rather than on a fixed reconstitution schedule. The fund may also utilize futures contracts to manage its exposure.

Holdings Breakdown

Number of Holdings

1510

Top 10 Concentration

3482.0%

Top 20 Concentration

4500.0%

Turnover Rate

200%

Category	Weight	Description
Information Technology	31.9%
Financials	13.3%
Consumer Discretionary	10.8%
Communication Services	9.9%
Industrials	9.8%
Health Care	9.7%
Consumer Staples	4.8%
Energy	3.1%
Materials	2.3%
Utilities	2.2%

Cost Efficiency

Expense Ratio

3.00%

Median Bid-Ask Spread

1.190%

Expense Ratio History

Year	Expense Ratio
2025	3.00%
2024	3.00%
2023	3.00%

Performance History

Year	ETF Return	Benchmark Return	Tracking Diff	Volatility	Max Drawdown	Sharpe Ratio
2025	16.90%	17.88%	-0.98%	N/A	N/A	N/A
2024	23.90%	25.02%	-1.12%	N/A	N/A	N/A
2023	25.50%	26.29%	-0.79%	N/A	N/A	N/A
2022	-17.70%	-18.11%	0.41%	N/A	N/A	N/A
2021	28.50%	28.71%	-0.21%	N/A	N/A	N/A

Annualized Return Since Inception

8.50%

Detailed Peer Comparison

Ticker	Name	Issuer	Exp Ratio	AUM (B)	1Y	3Y	5Y	Yield	StdDev 3Y	Sharpe 3Y	Spread
SPTM ⭐	State Street SPDR Portfolio S&P 1500 Composite Stock Market ETF	State Street Global Advisors	3.00%	US$12.1B	13.9%	20.9%	13.9%	1.13%	15.00%	1.05	1.000%
VTI	Vanguard Total Stock Market ETF	Vanguard	3.00%	US$567.0B	16.1%	21.0%	14.0%	1.11%	14.80%	1.10	1.000%
ITOT	iShares Core S&P Total U.S. Stock Market ETF	BlackRock	3.00%	US$43.7B	15.5%	20.5%	13.5%	1.10%	15.20%	1.00	2.000%
SCHB	Schwab U.S. Broad Market ETF	Charles Schwab	3.00%	US$38.0B	15.8%	20.8%	13.9%	1.11%	14.90%	1.08	1.000%
Category Average			3.00%	—	15.3%	20.8%	13.8%	1.11%	—	1.06	—

Risk Metrics

Beta

1.01

Standard Deviation

1 Year	3 Years	5 Years	10 Years
15.50%	15.00%	15.50%	16.00%

Sharpe Ratio

1Y	3Y	5Y	10Y
0.77	1.05	0.79	0.85

Sortino Ratio

3 Years	5 Years
N/A	N/A

Maximum Drawdown

1 Year	3 Years	5 Years	Since Inception
-7.99%	-8.75%	-23.64%	-50.23%

Correlations

S&P 500

0.99

Liquidity & Trading

Volume

Avg Daily Shares

834,080

Avg Daily Dollar Volume

US$70.1M

Trend

increasing

Bid-Ask Spread

Metric	Value
Median (Percent)	1.190%
Median (Dollar)	US$0.01
During Hours	N/A
At Close	N/A
Volatility	low

Premium/Discount to NAV

Metric	Value
Current	48.37%
30-Day Average	5.00%
1-Year Average	5.00%
Standard Deviation	3.00%
Max Premium (1Y)	10.00%
Max Discount (1Y)	-10.00%

Creation/Redemption Activity

Trend

Not readily available

Net Flows

Period	Net Flow
1 Month	US$-0.0M
1 Year	US$-0.0M

⚠️ Disclaimer: This ETF research report is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell securities. EC² Invest is not a registered investment advisor. All data is sourced from public sources and may contain errors. Past performance does not guarantee future results. ETF investing involves risk, including possible loss of principal. Always conduct your own research and consult with a qualified financial professional before making investment decisions.