Average Daily Volume
70.9M
Fund Overview
The SPDR S&P 500 ETF Trust (SPY) is one of the largest and most widely traded ETFs, designed to track the performance of the S&P 500 Index. Launched in 1993 by State Street Global Advisors, SPY provides investors with exposure to 500 of the largest U.S. publicly traded companies, spanning various sectors. The fund is known for its high liquidity, tight bid-ask spreads, and low expense ratio, making it a popular choice for both individual and institutional investors. SPY is often used as a core holding in diversified portfolios due to its broad market representation and historical performance.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.24 %
- Currency Hedged
-
No
- Portfolio Turnover
-
3 %
- Dividend Date
-
Why Invest in the SPY ETF?
Potential Benefits
- Provides diversified exposure to 500 large-cap U.S. stocks, reducing single-stock risk.
- Highly liquid with tight bid-ask spreads, making it easy to trade.
- Low expense ratio (0.0945%) compared to many actively managed funds.
- Historically strong long-term performance, closely tracking the S&P 500.
- Widely used as a benchmark and core holding in portfolios.
- Offers transparency with daily holdings disclosure.
Potential Risks
- Market risk: Performance tied to the broader U.S. equity market, which can be volatile.
- Concentration risk: Top-heavy with significant weightings in mega-cap stocks like Apple and Microsoft.
- No active management to mitigate downturns or exploit opportunities.
- Interest rate sensitivity: Rising rates can negatively impact equity valuations.
- Sector concentration risk, particularly in technology and financials.
- Tracking error risk, though typically minimal for SPY.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.5%
|
-0.9%
|
-4.9%
|
+10.5%
|
+5.3%
|
-1.0%
|
0.0%
|
+2.7%
|
-0.3%
|
+2.2%
|
-
|
-
|
| 2025 |
+2.7%
|
-1.3%
|
-5.6%
|
-0.9%
|
+6.3%
|
+5.1%
|
+2.3%
|
+2.1%
|
+3.6%
|
+2.4%
|
+0.2%
|
+0.1%
|
| 2024 |
+1.6%
|
+5.2%
|
+3.3%
|
-4.0%
|
+5.1%
|
+3.5%
|
+1.2%
|
+2.3%
|
+2.1%
|
-0.9%
|
+6.0%
|
-2.4%
|
| 2023 |
+6.3%
|
-2.5%
|
+3.7%
|
+1.6%
|
+0.5%
|
+6.5%
|
+3.3%
|
-1.6%
|
-4.7%
|
-2.2%
|
+9.1%
|
+4.6%
|
| 2022 |
-5.3%
|
-3.0%
|
+3.8%
|
-8.8%
|
+0.2%
|
-8.2%
|
+9.2%
|
-4.1%
|
-9.2%
|
+8.1%
|
+5.6%
|
-5.8%
|
| 2021 |
-1.0%
|
+2.8%
|
+4.5%
|
+5.3%
|
+0.7%
|
+2.2%
|
+2.4%
|
+3.0%
|
-4.7%
|
+7.0%
|
-0.8%
|
+4.6%
|
| 2020 |
0.0%
|
-7.9%
|
-12.5%
|
+12.7%
|
+4.8%
|
+1.8%
|
+5.9%
|
+7.0%
|
-3.7%
|
-2.5%
|
+10.9%
|
+3.7%
|
| 2019 |
+8.0%
|
+3.2%
|
+1.8%
|
+4.1%
|
-6.4%
|
+7.0%
|
+1.5%
|
-1.7%
|
+1.9%
|
+2.2%
|
+3.6%
|
+2.9%
|
| 2018 |
+5.6%
|
-3.6%
|
-2.7%
|
+0.5%
|
+2.4%
|
+0.6%
|
+3.7%
|
+3.2%
|
+0.6%
|
-6.9%
|
+1.9%
|
-8.8%
|
| 2017 |
+1.8%
|
+3.9%
|
+0.1%
|
+1.0%
|
+1.4%
|
+0.6%
|
+2.1%
|
+0.3%
|
+2.0%
|
+2.4%
|
+3.1%
|
+1.2%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
AAPL
|
APPLE INC |
6.4 % |
|
MSFT
|
MICROSOFT CORP |
6.3 % |
|
NVDA
|
NVIDIA CORP |
6.0 % |
|
AMZN
|
AMAZON.COM INC |
3.9 % |
|
META
|
META PLATFORMS INC CLASS A |
2.8 % |
|
BRK-B
|
BERKSHIRE HATHAWAY INC CLASS B |
2.1 % |
|
GOOGL
|
ALPHABET INC CLASS A |
2.0 % |
|
AVGO
|
BROADCOM INC |
1.9 % |
|
TSLA
|
TESLA INC |
1.6 % |
|
GOOG
|
ALPHABET INC CLASS C |
1.6 % |
Top 10 holdings shown, out of 504 total holdings.
Related ETFs: SPY vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
SPY seeks to provide investment results that correspond generally to the price and yield performance of the S&P 500 Index. The fund uses a passive management strategy, investing substantially all (but at least 80%) of its total assets in the securities comprising the index. The S&P 500 is a market-cap-weighted index, meaning companies with larger market capitalizations have greater influence on the index's performance. SPY holds all 500 stocks in approximately the same proportions as they appear in the index. The fund is rebalanced quarterly to maintain proper weightings, with adjustments made for corporate actions between rebalancings.
Frequently Asked Questions
What is the difference between SPY and VOO?
Both track the S&P 500, but VOO has a lower expense ratio (0.03% vs. 0.0945%). SPY offers greater liquidity, making it preferable for active traders, while VOO may be better for buy-and-hold investors.
Does SPY pay dividends?
Yes, SPY pays quarterly dividends based on the accumulated dividends from its underlying holdings, typically yielding about 1.3-1.5% annually.
Can SPY be used for day trading?
Yes, SPY is one of the most popular ETFs for day trading due to its high liquidity, tight spreads, and options availability.
How often does SPY rebalance?
SPY's holdings are adjusted quarterly to match changes in the S&P 500 Index composition, with interim adjustments for corporate actions.
What percentage of SPY is in technology stocks?
As of recent data, technology stocks typically comprise about 25-30% of SPY's holdings, making it the largest sector allocation.
Industry Overview
The SPDR S&P 500 ETF (SPY) provides exposure to the large-cap U.S. equity market, representing about 80% of available market capitalization. The S&P 500 is widely regarded as the best single gauge of large-cap U.S. equities, comprising leading companies across all major industries. Investing in SPY offers participation in the growth of the U.S. economy while providing diversification across sectors. The index's market-cap weighting means larger companies have greater influence, which can be beneficial during rallies in mega-cap stocks but may increase concentration risk.
Alternative Comparison
Compared to similar S&P 500 ETFs like IVV and VOO, SPY has a slightly higher expense ratio (0.0945% vs. 0.03% for both IVV and VOO) but offers superior liquidity with tighter bid-ask spreads, making it particularly attractive for active traders. Unlike some competitors that use sampling strategies, SPY aims for full replication of the index. RSP offers an alternative approach with equal weighting of all 500 stocks, which reduces concentration risk but may underperform during periods when mega-cap stocks lead the market.
Issuer Overview
State Street Global Advisors (SSGA), the issuer of SPY, is one of the world's largest asset managers with over $4 trillion in assets under management. SSGA is a pioneer in ETFs, having launched the first U.S. ETF (SPY) in 1993. The firm is known for its index-tracking expertise and offers a wide range of investment solutions across asset classes. SSGA's ETFs are generally characterized by low costs, liquidity, and transparency.
Conclusion
SPY remains the most liquid and widely recognized S&P 500 ETF, offering efficient exposure to large-cap U.S. equities. While newer competitors may offer marginally lower fees, SPY's unparalleled trading volume and tight spreads make it ideal for investors who value liquidity. The fund serves well as a core portfolio holding for long-term investors seeking broad U.S. market exposure with minimal tracking error.
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