What Is The SPY ETF? | Bankrate (2024)

FAQs

What Is The SPY ETF? | Bankrate? ›

The SPDR S&P 500 ETF trust, listed on the New York Stock Exchange as SPY, is a popular exchange-traded fund (ETF) that tracks the performance of the S&P 500 index. SPY is the first ETF listed in the U.S. and debuted in 1993. The fund offers investors exposure to around 500 of the largest companies in the U.S.

How Does the SPY ETF Work? The SPY ETF works like other S&P 500 ETFs, in that it attempts to replicate the returns of the S&P 500 index. To do this, SPY holds all the stocks in the S&P 500 in equal proportion to their weighting in the index.

The SPDR S&P 500 ETF is listed on the New York Stock Exchange and trades under the ticker symbol SPY. The SPY's price tracks the S&P 500 index. The SPDR S&P 500 ETF allows investors to track the performance of the US economy without having to buy all the stocks listed on the S&P 500 directly.

SPDR S&P 500 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, SPY is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market.

SPX vs. SPY: What's the difference? SPY is the ticker symbol for an exchange-traded fund that tracks the performance of the S&P 500 Index; it trades like a stock. SPX is simply a numerical value that represents the level of the S&P 500 and cannot be traded directly.

Vanguard S&P offers a lower expense ratio (0.035%) than SPY (0.095%), which means lower costs for investors and potentially higher net returns over the long term. VOO might be the more economical choice for cost-conscious investors, especially those investing large sums or planning for long-term goals like retirement.

In the past year, QQQ returned a total of 29.88%, which is higher than SPY's 26.19% return. Over the past 10 years, QQQ has had annualized average returns of 18.31% , compared to 12.50% for SPY. These numbers are adjusted for stock splits and include dividends.

SPY Dividend Information

SPY has a dividend yield of 1.27% and paid $6.72 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.

Is SPY a Buy, Sell or Hold? SPY has a consensus rating of Moderate Buy which is based on 407 buy ratings, 90 hold ratings and 7 sell ratings.

Why is SPY stock so popular? ›

The SPY ETF is highly liquid, meaning it can be easily bought and sold on major stock exchanges. Its significant trading volume ensures that investors can enter or exit positions without impacting the market price significantly. This liquidity makes it a preferred choice for many traders and institutions.

In the last 30 Years, the SPDR S&P 500 (SPY) ETF obtained a 10.35% compound annual return, with a 15.12% standard deviation.

Since it was expanded to include 500 stocks in 1957, the average annualized return in the S&P 500 is closer to 10.15%. That means the average annualized return in SPY is roughly 10%.

SPY is managed by State Street Global Advisors, an ETF pioneer and one of the world's largest asset managers, and is benchmarked to the S&P 500 Index from S&P Dow Jones Indices, one of the most trusted index providers.

A Standard & Poor's Depositary Receipt, or SPDR, is a type of exchange traded fund that began trading on the American Stock Exchange (AMEX) in 1993 when State Street Global Advisors' investment management group first issued shares of the SPDR 500 Trust (SPY).

SPY Dividend Information

SPY has a dividend yield of 1.28% and paid $6.72 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.

SPYI has a consensus rating of Moderate Buy which is based on 406 buy ratings, 92 hold ratings and 7 sell ratings. What is SPYI's price target? The average price target for SPYI is $55.78.