Current performance may be higher or lower than that quoted. Performance of an index is not illustrative of any particular investment. All results are historical and assume the reinvestment of dividends and capital gains. (Also known as Standardized Yield) An annualized yield that is calculated by dividing the net investment income earned by the fund over the most recent 30-day period by the maximum offering price on the last day of the period. The weighted harmonic average of closing market price divided by the most recent reported book value for each security in the fund’s portfolio as calculated for the last twelve months.
Trusted Providers
Index returns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income as applicable. Represents the volume of shares traded on the ETF’s primary exchange throughout the previous business day.
Fund Net Asset Value
The values of GLD shares and GLDM shares relate directly to the value of the gold held by each Fund (less its expenses), respectively. Fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them.
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It is also available for trading on other major exchanges around the world, including the NASDAQ, the Chicago Board Options Exchange (CBOE), the London Stock Exchange, the Tokyo Stock Exchange, among others. It is also available for trading on many online brokerage platforms, which makes it easy for investors to buy and sell shares of the ETF from anywhere in the world. After-tax returns are calculated based on NAV using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown.
Is the SPDR S&P 500 ETF Trust a Good Investment?
- (Also known as Mid Price) The price between the best price of the sellers for a trading unit of a given security and the best price of the buyer of a trading unit of a given security.
- Investment return and principal value will fluctuate, so you may have a gain or loss when shares are sold.
- Shares of each Fund trade like stocks, are subject to investment risk and will fluctuate in market value.
Low-cost ETFs can help investors build efficient and diversified core portfolios designed to achieve their investment goals across the risk spectrum — for less. The SPY and other index ETFs provide investors a way to own the entire index by owning a single security for a low cost. While this ratio is low, it is not the lowest among other ETFs that track the S&P 500 Index.
The fund is required to disclose its holdings and other financial information to the public on a regular basis, and it must follow certain rules related to diversification, valuation, risk management. As an investor in SPY, you can expect a high level of transparency and accountability from the fund and its management team. Building a portfolio is all about having a firm foundation. Exchange-traded funds (ETFs) help build firm foundations that protect you from major losses during weak periods in the stock market in specific sectors.
While ETFs may trade like ordinary shares of stock, they represent a portfolio of stocks and not just one company. The amount of dividend income that SPY investors receive will depend on the amount of dividend-paying stocks in the ETF’s portfolio and the dividends that those stocks pay. Since the S&P 500 Index is made up of a diverse group of large-cap stocks from various sectors, the dividend yield of SPY can vary from quarter to quarter and year to year. The SPDR® S&P 500® ETF is listed on the New York Stock Exchange (NYSE Arca) under ticker symbol SPY.
Based on trailing 10-year data, the fund generated average annual returns of 12.72%. Since the inception of the SPDR S&P 500 ETF Trust, the fund achieved average annual returns of 10.36%. Because of its relative age, the ETF is constructed as a unit investment trust (UIT). This means it’s a fixed portfolio that forms units that can be created and redeemed with the issuer.
These stocks are selected by a committee based on market size, liquidity, and industry. The S&P 500 serves as one of the main benchmarks of the U.S. equity market and indicates the financial health and stability of the economy. Also known as the SPY ETF, it was established in January 1993. Read on to find out more about this fund, including its top holdings and investment style. SPY is the ticker symbol for the SPDR® S&P 500® ETF, an exchange traded fund that tracks the performance of the S&P 500® Index.
SPY touches nearly every corner of the US economy, giving investors broad exposure to the world’s largest market and many of its most recognized brand names in a single trade. Holdings and sectors shown are as of the date indicated and are subject to change. This information should not be considered a recommendation to invest in a particular sector or to buy or sell any security shown. It is not known whether the sectors or securities shown will be profitable in the future.
In today’s video, I will discuss how to build a solid portfolio around four key ETFs, including the SPDR S&P 500 ETF (SPY 1.49%). Investing involves risk, and you could lose money on an investment in each of SPDR® Gold Shares Trust (“GLD®” or “GLD”) and SPDR® Gold MiniShares® Trust (“GLDM®” or “GLDM”), a series of the World Gold Trust (together, the “Funds”). Interest rate risk and inflation challenge today’s portfolios. Learn how the unique traits of bond ETFs — liquidity, transparency, and lower costs — can help.
The price of a share of SPY is intended to be one-tenth that of the S&P 500 Index. So, if the S&P is at a level of 4,000, then one SPY share should trade at close to $400. From Sectors and Smart Beta to Fixed Income, SPDR Exchange Traded Funds (ETFs) give you wide access to diverse investment opportunities. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such. SPY is managed by State Street Global Advisors, an ETF pioneer and one of the world’s largest asset managers, and is benchmarked to the S&P 500 Index from S&P Dow Jones Indices, one of the most trusted index providers. The median of those values is identified and posted on each business day. Equity securities may fluctuate in value and can decline significantly in response to the activities of individual companies and general market and economic conditions. SSGA also manages ETFs that are sold on exchanges outside the United States.
However, if that same investor hedges their bets by also shorting the SPDR or buying put options, then some risks can be mitigated, which is a practice known as hedging the market. SPDR funds differ from mutual funds because shares of SPDR funds are not created for investors at the time of their investment. Instead, SPDRs have a fixed number of shares that are bought and sold on the open market and these shares trade on the exchanges like stock. Mutual fund shares, on the other hand, are created and redeemed by a mutual fund company. SPY is listed on the New York Stock Exchange’s (NYSE) Arca exchange, and investors can trade this ETF on multiple platforms.