Spiders

Spiders (SPDR)

What Does Spiders (SPDR) Mean?

The product name for the Standard & Poor's Depositary Receipt, which is an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard & Poor's 500 Index (S&P 500). Each SPDR share represents one-tenth of the S&P 500 index and trades at roughly one-tenth of the index's dollar value. The term also can refer to the general group of ETFs to which the Standard & Poor's Depositary Receipt belongs.

Investopedia explains Spiders (SPDR)

Spiders are listed on the American Stock Exchange (AMEX) under the ticker symbol SPY. SPDRs trade like stocks, are liquid, can be sold short and bought on margin, and are a good source for dividend income. As with a stock, investors pay a brokerage commission when trading SPDRs. Investors buy SPDRs to replicate the performance of the overall stock market. SPDRs are not actively managed and are thus passive investments (index investing).

Related Terms:
• American Stock Exchange—AMEX
• Benchmark
• Diversification
• Exchange-Traded Fund—ETF
• Standard & Poor's 500 Index—S&P 500