SPDR


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SPDR

The Standard and Poor's depositary receipt. This is a tracking stock which trades like an index mutual fund which follows the S&P 500. It trades continuously.

Spider

Also called a Standard & Poor's Depositary Receipt or a SPDR. An exchange-traded fund that tracks the Standard and Poor's 500. The organization issuing the SPDR owns each of the stocks traded on the S&P 500 in approximate ratio to their market capitalization. SPDR shares can be bought, sold, short-sold, traded on margin; they generally function as if they were stocks. Dividends are paid quarterly and are based on the accumulated dividends of all the stocks represented in the SPDR, less any expenses. Investors use SPDRs (and indeed all exchange-traded funds) as a way to easily diversify their portfolios at relatively low cost. Investors also see the demand for SPDRs as an indicator of which direction the market believes the S&P 500 is going. See also: Mid-Cap SPDR.

SPDR

Standard & Poor's Depositary Receipt (SPDR).

When you buy SPDRs -- pronounced spiders -- you're buying shares in a unit investment trust (UIT) that owns a portfolio of stocks included in Standard & Poor's 500 Index (S&P 500). A share is priced at about 1/10 the value of the S&P 500.

Like an index mutual fund that tracks the S&P 500, SPDRs provide a way to diversify your investment portfolio without having to own shares in all the S&P 500 companies yourself.

However, while the net asset value (NAV) of an index fund is set only once a day, at the end of trading, the price of SPDRs, which are listed on the American Stock Exchange (AMEX), changes throughout the day, reflecting the constant changes in the index.

SPDRs, which are part of a category of investments known as exchange traded funds (ETFs), can be sold short or bought on margin as stocks can.

Each quarter you receive a distribution based on the dividends paid on the stocks in the underlying portfolio, after trust expenses are deducted. If you choose, you can reinvest those distributions to buy additional shares.

References in periodicals archive ?
The SPDR redemption option affirms the appropriateness of adjusting the SPDR price series prior to estimating the extent of mispricing, if any.
You should buy SPDRs from discount brokerage firms, which charge lower commissions than full-service brokers.
SSgA is marking this milestone with the release of SPY: The Idea That Spawned an Industry, which explores the creation and early years of the SPDR S&P 500 ETF through interviews with key participants who conceived, tested and initially struggled to find a market for the first ETF.
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), has announced changes to the name and index of the SPDR Morgan Stanley Technology ETF, the company said.
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), has said that it has appointed Noel Archard as its head of global SPDR product and Seth Morrison as head of global SPDR marketing.
State Street Global Advisors has changed the name and index for its SPDR Russell Small Cap Completeness ETF (RSCO).
ETF name: SPDR MSCI Europe Value Weighted UCITS ETF, Asset class: equity index ETF, ISIN: IE00BSPLC306, Total expense ratio: 0.
State Street manages more than $337** billion in SPDR ETF assets worldwide (as of September 30, 2012) and is one of the largest ETF providers globally.
State Street Global Advisors (SSGA), the asset management business of State Street Corporation (NYSE: STT), has appointed Kathryn Sweeney as head of SPDR Americas Institutional sales, reporting into Nick Good, co-head with Rory Tobin of the global SPDR business, the company said.
Global Banking News-November 4, 2016--State Street Global Advisors names new promotion agent for SPDR ETFs in South America
SPDR Barclays High Yield Bond (JNK), SSGA: $757 million