Spiders - SPDRs

Spiders - SPDRs

Shares in a trust that owns stocks in the same proportion as that represented by the S&P 500 stock index. Spiders are also known as Standard & Poor's depository receipts (SPDRs), and their ticker symbol is SPY. Containing one-tenth of the S&P 500 index portfolio, the Spider portfolio sells for a dollar amount equal to about one-tenth of the S&P 500 index level.

Notes:

Spiders compete directly with S&P 500 index funds and, like ordinary shares, trade on the American Stock Exchange (AMEX) at ordinary stock transaction costs. By trading like a stock, Spiders have continuous liquidity while the market is open; they can be short sold and they provide regular dividend payments.

See also: ADR, American Stock Exchange - AMEX, Diamonds, Dividend Yield, ETF, S&P 500