The SPDR S&P 500 ETF Trust (AMEX:SPY) celebrates its 30th anniversary this month, making it the biggest exchange-traded fund (ETF) on the planet. SPY was launched in January 1993, and since then it has been a popular choice for investors looking for a low-cost and diversified way to access the stock market. SPY is an ETF of the S&P 500 Index, which is a market-cap weighted index of the 500 largest US publicly traded companies.
The success of the SPY ETF is a testament to the importance of index funds in the investment landscape. The fund has grown in popularity over the years due to its low cost and diversification. SPY has an expense ratio of just 0.09%, and it gives investors exposure to the 500 largest companies in the US. This makes it a great choice for investors who want to get exposure to a broad range of stock without having to pick individual stock.
In addition to its low cost and diversification, SPY also has a stellar track record. Over the past 30 years, the fund has provided investors with a total return of almost 500%. This compares favorably to the S&P 500 Index, which has returned an average of just over 10% per year over the same period. The fund has also outperformed the index in 10 of the past 15 calendar years.
Not surprisingly, SPY has also become one of the most widely held ETFs in the world. According to Morningstar, SPY has $375 billion in assets under management, making it the most popular ETF in the world. Nearly 60% of investors polled by Morningstar also said that ETFs have improved the overall performance of their portfolios.
The popularity of SPY has also been helped by the fact that it is traded on many of the world’s major stock exchanges. This makes it easier for investors to access the fund, regardless of where they are located. The fund is also highly liquid, with an average daily trading volume of around 72 million shares.
The success of the SPY ETF over the past 30 years has also had a positive impact on the ETF industry as a whole. The fund has helped to make ETFs more accessible and popular with investors. As a result, the ETF industry has grown exponentially over the past decade, and ETFs now account for a large portion of the assets held by investors.
In conclusion, the success of the SPDR S&P 500 ETF Trust (AMEX:SPY) over the past 30 years is a testament to the importance of index funds in the investment landscape. The fund has provided investors with a low-cost and diversified way to access the stock market, and it has also helped to make ETFs more popular with investors. As the fund celebrates its 30th anniversary, it is a reminder of the value that index funds can bring to investors.
