Standard & Poor's Depositary Receipts

The SPDR S&P 500 (NYSE: SPY) is an exchange-traded fund from State Street Global Advisors that tracks the S&P 500.[1][2] For a long time, the fund was the largest ETF in the world.[3] As of August 2012, it is the largest exchange-traded product in the world, and also the most actively traded.[4]

History

On 29 January 1993 (1993-01-29), Boston asset manager SSgA (State Street Global Advisors) launched the Standard & Poor's Depositary Receipts as the first exchange-traded fund in the United States (preceded by the short-lived Index Participation Shares which had launched in 1989). The fund is part of the SPDRs ETF chain.[5][6][7] Designed and developed by American Stock Exchange executives Nathan Most and Steven Bloom,[8][9] the fund first traded on that market, but has since been listed elsewhere, including the New York Stock Exchange.[10]

According to web glossary InvestorWords.com:

"One SPDR unit is valued at approximately 1/10 of the value of the S&P 500. Dividends are distributed quarterly, and are based on the accumulated stock dividends held in trust, less any expenses of the trust."[11]

The sponsor is PDR Services LLC, a wholly owned subsidiary of American Stock Exchange LLC.

Listing

Since 2011, the fund is listed on the Tokyo Stock Exchange (1557).

Competition

SPDR S&P 500's competition is largely other funds that are also based on the S&P 500. Other funds are based on similar indexes such as iShares Russell 1000 (NYSE Arca: IWB).

A somewhat different idea is the Guggenheim S&P 500 Equal Weight (NYSE Arca: RSP),[12] which uses an equal-weight version of the S&P 500.

ETFs that are based on the S&P 500 index include:

Normal

Inverse

Leveraged 200%

Inverse leveraged 200%

Leveraged 300%

Inverse leveraged 300%

See also

References
  1. What Is a Spider (SPDR)? - TheStreet Definition TheStreet
  2. What is a spider and why should I buy one? Investopedia
  3. "Largest ETFs: Top 25 ETFs By Market Cap". ETFdb. Retrieved 2010-11-03.
  4. ETP Landscape Industry Highlights Black Rock
  5. Bogle, John C. (2007-02-09). 'Value' Strategies. Wall Street Journal, 9 February 2007. Retrieved from https://www.wsj.com/articles/SB117099466838903386.
  6. Dellva, Wilfred (2001-04). Exchange-Traded Funds Not for Everyone. Journal of Financial Planning, April 2001. Retrieved from "Archived copy" (PDF). Archived from the original (PDF) on 2006-10-05. Retrieved 2008-04-21.CS1 maint: archived copy as title (link).
  7. Jennifer Bayot (2004-12-10). "Nathan Most Is Dead at 90; Investment Fund Innovator". New York Times. Retrieved 2008-04-23.
  8. Carrel, Lawrence (2008), ETFs for the Long Run, John Wiley & Sons, 2008, ISBN 978-0-470-13894-6
  9. http://ir.nasdaq.com/releasedetail.cfm?releaseid=206581
  10. NYSE Arca: SPY
  11. "SPDR". InvestorWords.com, WebFinance, Inc. Retrieved 2008-04-23.
  12. Rydex page on RSP
  13. iShares page on IVV
  14. Vanguard page on VOO
  15. ProShares page on SH
  16. ProShares page on SSO
  17. Rydex page on RSU
  18. ProShares page on SDS
  19. Rydex page on RSW
  20. ProShares page on UPRO
  21. ProShares page on SPXU
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