What is the S&P 500 ETF (SPY)?

There are many S&P 500 index funds on the market today but the SPDR S&P 500 ETF (SPY) was the first designed to track the S&P 500 index. In fact, SPY was the first exchange-traded fund of any kind to be listed on a U.S. stock exchange. What Is the SPY ETF?

Why should you invest in a SPY ETF?

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.

How much is a spy share worth?

So, if the S&P is at a level of 4,000, then one SPY share should trade at close to $400. SPY turned 30 on Jan. 22, 2023, celebrating the milestone by remaining the largest ETF tracking the S&P 500 Index. Because of its relative age, the ETF is constructed as a unit investment trust (UIT).

What are the top sectors in the SPY ETF?

The top sectors in the SPY ETF by allocation weight, as of June, 2022, are technology at 25%, financials at 14%, and healthcare at 14%. Alphabet Inc. A ( GOOGL) Important: ETFs and mutual funds that track an underlying stock index are described as passively-managed funds because the fund manager does not use discretion in selecting the securities.