SPDRs


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Related to SPDRs: vanguard, IShares

SPDRs

SPDRs (Spiders) are designed to track the value of the Standard & Poor's 500 Composite Price Index. Stands for Standard & Poor's Depositary Receipt. They trade on the American Stock Exchange under the symbol SPY. SPDRs are similar to closed-end funds but are formally known as, a unit investment trust. One SPDR unit is valued at approximately one-tenth (1/10) of the value of the S&P 500. Dividends are disbursed quarterly, and are based on the accumulated stock dividends held in trust, less any expenses of the trust. See: Mid-cap SPDR.

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.
References in periodicals archive ?
Despite the fact that both closed-end funds and SPDRs are held predominately by individual investors, SPDRs prices are very close to fundamental values.
Since the inception of SPDRs in 1993, the AMEX has introduced a variety of other exchange-based UITs based on the Dow Jones industrial average and international markets.
The asset management business of State Street Corporation (NYSE:STT), State Street Global Advisors (SSGA) disclosed on Thursday that the Financial Services Select Sector SPDR Fund (XLFS) and the Real Estate Select Sector SPDR Fund (XLRE) began trading on the NYSE Arca.
SSGA's suite of US-listed sector and industry SPDR ETFs now includes 36 funds with more than USD 160 billion in assets as of December 21, 2017.
According to the firm, three SPDR ETFs will seek to track Russell Indexes that provide comprehensive coverage of each underlying market segment.