SPY: The Original S&P 500® ETF | SPDR® (2024)

FAQs

What is the difference between the S&P 500 and the SPY ETF? ›

SPX and SPY: What's the difference? SPY is the stock code of exchange traded funds that track the performance of the S&P 500 index; It trades like a stock. SPX is only a value representing the level of the Standard & Poor's 500 Index and cannot be traded directly.

SPLG - Performance Comparison. The year-to-date returns for both investments are quite close, with SPY having a 9.81% return and SPLG slightly higher at 9.86%. Both investments have delivered pretty close results over the past 10 years, with SPY having a 12.38% annualized return and SPLG not far ahead at 12.64%.

Is the SPDR S&P 500 ETF Trust a Good Investment? Yes. The SPY ETF diversifies exposure to the U.S. equity market and is suitable for investors willing to take on a moderate level of risk. Since it tracks the S&P 500 Index, it is often a suitable choice for those seeking passive index investing.

The SPY's price tracks the S&P 500 index. The S&P 500 stock market index, which is made up of the 500 largest companies listed on U.S. stock exchanges, is considered the best indicator of the overall health of the U.S. economy and, to a larger extent, the world economy.

SPY Vs SPX Overview

The S&P 500 index contract tracks the 500 of the largest publicly-traded company in the United States. In most cases, traders with more capital lean towards using SPX options, while those with less tend to use SPY. This is because SPX costs 10 times more than SPY, as you'll read more about below.

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%.

Low 2 bps Expense Ratio: Compared to other S&P 500® ETFs, SPLG boasts a significantly lower 2 bps expense ratio — which may translate to substantial savings over the long-term for cost-conscious investors.

VOO is more expensive with a Total Expense Ratio (TER) of 0.03%, versus 0.02% for SPLG. VOO is up 18.7% year-to-date (YTD) with +$48.81B in YTD flows. SPLG performs worse with 18.69% YTD performance, and +$10.47B in YTD flows.

In the long run, the funds' broad diversification, low turnover, and low fees outweigh these risks.” While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver.

Which S&P 500 ETF is the best? ›

SPY Dividend Information

SPY has a dividend yield of 1.29% and paid $6.84 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Jun 21, 2024.

ETF fees are expressed as an expense ratio, which is a percentage representing a fund's assets used to pay its operating costs. The SPY ETF expense ratio is just 0.09%, which is $9 for every $10,000 invested.

The average yearly return for the S&P 500 is 10.64% over the last 100 years. In this article, you'll find statistics on the average stock market performance over the last 5, 10, 20, 30, 50, 100, and 150 years.

SPY is the ticker symbol for an exchange-traded fund that tracks the performance of the S&P 500 index; it is traded like a stock. SPX is simply the numerical value that represents the level of the S&P 500 index and is not directly tradable.

Key Takeaways

Dividend ETFs invest in high-yielding dividend stocks to maintain a stable, steady income. The S&P 500 is a broad-based index of large U.S. stocks, providing growth and diversification. The best choice for you will depend on whether you prefer income or growth from your investments.

Fees are one of the main differentiating features between VOO and SPY, as they have identical investment objectives and nearly identical portfolios. While SPY has an annual expense ratio of 0.0945%, VOO's is just 0.03%.

Many investors use SPY to diversify a portfolio and to gain exposure to the U.S. stock market without having to buy individual stocks. The low expenses inherent with ETFs like SPY enable investors to track the S&P 500 index more closely compared to index funds with higher expenses.