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Standard & Poor's Depositary Receipts

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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

The Standard & Poor's Depositary Receipts were launched by Boston asset manager SSgA State Street Global Advisors on January 29, 1993 as the first exchange-traded fund in the United States (preceded by the short-lived Index Participation Shares that launched in 1989); and are 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 (NYSE ArcaSPY).

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.[10]

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 ArcaIWB).

A somewhat different idea is the Guggenheim S&P 500 Equal Weight (NYSE ArcaRSP),[11] 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. ^ John C. Bogle, 'Value' Strategies, Wall Street Journal (Feb. 9, 2007).
  6. ^ Wilfred Dellva, Exchange-Traded Funds Not for Everyone, Journal of Financial Planning (Apr. 2001).
  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. ^ "SPDR". InvestorWords.com, WebFinance, Inc. Retrieved 2008-04-23.
  11. ^ Rydex page on RSP
  12. ^ iShares page on IVV
  13. ^ Vanguard page on VOO
  14. ^ ProShares page on SH
  15. ^ ProShares page on SSO
  16. ^ Rydex page on RSU
  17. ^ ProShares page on SDS
  18. ^ Rydex page on RSW
  19. ^ ProShares page on UPRO
  20. ^ ProShares page on SPXU