Standard & Poor's Depositary Receipts

The SPDR S&P 500 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, 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 2008-07-05. Retrieved 2008-04-21. .
  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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