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 ?
Rydex markets the S&P Equal Weight ETF (RSP), which, as its name suggests, gives each S&P 500 Index member an equal 0.2% weighting, thereby "eliminating the bias towards large companies." (The 10 largest components of the S&P 500 have a combined 20% weighting in the market cap weighted index but just 2% of an equal weight index.) The Rydex ETF has $1.8 billion in assets though it has a much higher expense ratio--0.4%--than the SPDR or iShares funds, which charge 0.0945% and 0.09%, respectively.
EACH IN THEIR OWN WAY ETF'S OF NOTE WHOSE INDEX IS THE S&P 500 FUND S&P TOTAL RETURN RANKING YTD 1-YR 3-YR 5-YR ALPHA PROSHARES UW NA NA NA NA CREDIT SUISSE 130/30 / CSM FIRST TRUST LARGE CAP UW 36.9 36.9 NA NA CORE ALPHA FUND / FEX ISHARES S&P 500 INDEX OV 26.6 26.6 -5.7 0.4 FUND/ IVV POWERSHARES S&P 500 MW 24.0 24.0 NA NA BUYWRITE PORT / PBP REVENUESHARES LARGE MW 29.4 29.4 NA NA CAP FUND / RWL RYDEX S&P EQUAL WEIGHT MW 45.8 45.8 -4.1 1.7 ETF / RSP SPDR TRUST, SERIES 1 / SPY OV 26.4 26.4 -5.7 0.4 WISDOMTREE EARNINGS OW 27.2 27.2 NA NA 500 FUND / EPS FUND CURRENT.
SPDRs trade on the American Stock Exchange and can be expected to track the S&P 500 very closely.
According to the American Stock Exchange, SPDRs had $14 billion in assets as of May 2001.
Despite the fact that both closed-end funds and SPDRs are held predominately by individual investors, SPDRs prices are very close to fundamental values.
In fact, as we document in the following section, individual investors invest much more heavily in SPDRs than in S&P500 stocks.
You should buy SPDRs from discount brokerage firms, which charge lower commissions than full-service brokers.
"We now have over $22 billion in assets in DIAMONDS, SPDRs, WEBS and others, and they contribute about 40% to 50% of the total trading volume of the exchange," says Jay Baker, vice president of marketing for the AMEX.
Also, the company said that together with the launch of XLFS and XLRE, the expense ratios for the entire Select Sector SPDR ETF suite will be reduced to 0.14% as the gross expense ratio for both is 0.15% and after expense waivers of 0.01% result in the net expense ratio of 0.14%.
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes and are managed by SSGA Funds Management Inc, a registered investment adviser and wholly owned subsidiary of State Street Corporation.
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.