SPDR® S&P 500® ETF Trust Overview
SPDR® S&P 500® ETF Trust (SPY) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). SPDR State Street Global Advisors launched the ETF in 1993.
The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index. The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the index (the “Portfolio”), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the index.
About SPDR® S&P 500® ETF Trust (SPY)
There are 1 members of the management team with an average tenure of 31.63 years: Management Team (1993). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 1 primary benchmark: S&P 500 TR USD index with a weighting of 100%. SPDR® S&P 500® ETF Trust has 504 securities in its portfolio. The top 10 holdings constitute 34.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
SPDR® S&P 500® ETF Trust is part of the Equity global asset class and is within the U.S. Equity ETF group. SPDR® S&P 500® ETF Trust has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2% There is 0.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). SPDR® S&P 500® ETF Trust has 0.1% of the portfolio in cash.
Assets Under Management
SPDR® S&P 500® ETF Trust has a trailing dividend yield of 1.21%, which is below the 1.23% category average. The fund normally distributes its dividend income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
SPY Performance and Fees
High portfolio turnover can translate to higher expenses and lower aftertax returns. SPDR® S&P 500® ETF Trust has a portfolio turnover rate of 2%, which indicates that it holds its assets around / 0.5 years. By way of comparison, the average portfolio turnover is 60% for the Large Blend category.
Recently, in the month of August 2024, SPDR® S&P 500® ETF Trust returned 2.4%, which earned it a grade of C, as the Large Blend category had an average return of 2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
SPDR® S&P 500® ETF Trust Grades
Year to date, the ETF has returned 19.4%, 2.5 percentage points better than the category, which translates into a grade of B. The fund has returned 27.0% over the past year (grade of B), 9.3% over the past three years (grade of B) and 15.8% per year over the past five years (grade of B) and 12.9% per year over the past 10 years (grade of B).
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