Entities

SPDR S&P 500 ETF

SPDR S&P 500 ETF

Nickname
SPY ETF
Acronym
SPDR
Industry
Founding Date
1993
Parent Entity

SPDR S&P 500 ETF is one of the largest and most heavily-traded ETFs in the world, with net assets of $173 billion, offering exposure to one of the most well-known equity benchmarks. Better known as the SPY ETF, it allocates almost all of its funds into common stocks which are included in the Standard & Poor's 500 Index, which comprises 500 large- and mid-cap U.S. stocks. While SPY certainly may have appeal to investors seeking to build a long-term portfolio and include large cap U.S. stocks, this fund has become extremely popular with more active traders as a way to toggle between risky and safe assets. The SPDR S&P 500 ETF Trust has a four-star Morningstar rating, and has generated an average annual return of just under 10% since inception.

  • SPDR is an acronym for the Standard & Poor's Depositary Receipts, the former name of the ETF.

  • The S&P 500 serves as one of the main benchmarks of the U.S. equity market and indicates the financial health and stability of the economy.

  • Its top 10 holdings are heavily weighted in technology companies such as Apple, Microsoft, and Amazon—approximately one-quarter of the SPY ETF is invested in the technology sector.

  • Their stocks collection is selected by a committee based on market size, liquidity, and industry.

  • The SPY is a well-diversified basket of assets, which allocates its fund into multiple sectors, such as: