The SPDR S&P 500 ETF (SPY) was launched on 01/29/1993 and is a passively managed exchange traded fund that provides broad exposure to the Large Cap Blend segment of the US equity market. Sponsored by State Street Global Advisors, the fund has amassed assets over $524.08 billion, making it the largest ETF attempting to match this segment of the market.
Large cap companies typically have a market capitalization above $10 billion, offering stability and predictable cash flows. Blend ETFs like SPY hold a mix of growth and value stocks, providing characteristics of both types of equities.
With an expense ratio of 0.09%, SPY is one of the least expensive products in its space and has a 12-month trailing dividend yield of 1.26%.
The ETF has the heaviest allocation to the Information Technology sector, with top holdings including Microsoft Corp, Apple Inc, and Nvidia Corp. The top 10 holdings make up about 32.67% of total assets under management.
SPY seeks to match the performance of the S&P 500 Index before fees and expenses. It has performed well, gaining approximately 14.89% year-to-date and 26.36% in the last year. With a beta of 1 and a standard deviation of 17.18%, it is considered a medium-risk choice.
Alternative ETFs in the same space include the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV), both tracking the same index with different asset sizes and expense ratios.
Passively managed ETFs like SPY are popular among institutional and retail investors for their low costs, transparency, flexibility, and tax efficiency. Investors seeking exposure to the Large Cap Blend segment of the market may find SPY to be an excellent option.