About SPY ETF
Overview:
The State Street S&P 500 ETF (SPY) is one of the most recognized ETFs and invests in companies across all eleven GICS sectors and is managed by State Street Global Advisors that has a total AUM of $2.73T.
SPY is an exchange-traded fund incorporated in the USA in Jan 1993 and was the very first exchange-traded fund listed in the United States.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
Sector:
SPY has invested in Technology (26%), Healthcare (14%), Financials (14%), Consumer Cyclical (13%), and Industrials (10%).
Geography:
SPY has invested 100% of its assets in the U.S.
Recommended for:
Growth
The ETF is structured as a Unit Investment Trust and pays dividends on a quarterly basis. SPY is the best-recognized and is the oldest ETF to be listed. The fund tracks the massively popular US index, the S&P 500.
According to ETFdb.com, "While SPY certainly may have appeal to investors seeking to build a long-term portfolio and include large cap U.S. stocks, this fund has become extremely popular with more active traders as a way to toggle between risky and safe assets."
Additional Information:
1. Fund Factsheet
2. The No. 2 most popular fund on planet is 'SPY'
3. Options Traders Prefer SPY Over Other S&P 500 ETFs
4. Another First For The SPDR S&P 500 ETF
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta, and R-squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. SPY is extremely cheap to hold and phenomenal trading volume makes it the perfect ETF for long and short-term investors alike and typically tops the rankings for the largest AUM. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
