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 introduction of the largest ETF in the world to the ASX marks a milestone in the evolution of the Australian ETF industry, with SPDR ETFs at the forefront, said Amanda Skelly, head of SPDR ETFs for State Street Global Advisors.
ETF name: SPDR MSCI Europe Small Cap Value Weighted UCITS ETF, Asset class: equity index ETF, ISIN: IE00BSPLC298, Total expense ratio: 0.30 percent, Distribution policy: accumulating, Benchmark: MSCI Europe Small Cap Value Weighted Index.
A comprehensive family spanning an array of international and domestic asset classes, SPDR ETFs are managed by SSGA Funds Management Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation.
The same three providers had the largest net ETF/ETP inflows globally for the year to date: iShares $88.4 billion, Vanguard $63.5 billion and SPDR ETFs $22.6 billion.
The SPDR BofA Merrill Lynch 0-5 Year EM USD Government Bond UCITS ETF enables investors to participate in the performance of USD-denominated government bonds with short maturities from emerging market countries.
These boutiques will stock Spyder's SPDR [sup.(R)] branded hemp derived, and infused products developed for an aging, health and wellness demographic.
This includes approximately USD33bn of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors LLC (SSGA FD) acts solely as the marketing agent.
With the addition of these funds, the number of SPDR ETFs listed on the BMV now totals 74.
Head of Precious Metals Business Development at ICBC Standard Bank Plc Raj Kumar said: "We are delighted to be the custodian for SPDR Gold MiniShares Trust, and to be partnering with the World Gold Council.
* SPDR S&P 500 ETF (SPY) - $307 billion / $19.8 billion
We are excited for Bobby to further extend our SPDR ETF resources to the Canadian market, said Peter Lindley, head of SSGA Canada.
Assets in the SPDR Gold Trust, the biggest fund backed by gold, fell 8.42 metric tonnes, according to data on its website.