SPDR® S&P 500 (SPY)


An S&P 500 ETF is an exchange-traded fund that seeks to track the S&P 500 in order to provide broad exposure to stocks in the US stock market.The SPDR® S&P 500 focuses on large-, mid-, and small-cap companies that are selected by an independent third party, Standard & Poor’s, based on liquidity and representativeness.

More About SPDR® S&P 500 (SPY)

Continue reading to learn more about: Does VOO charge commission?
How does the SPDR S & P 500 ETF work?
What is the difference between SPDR and the S & P 500?
What is the difference between an ETF and an SPDR?
What is the most common winning investment strategy for new beginners?


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Does VOO charge commission?


The SPDR® S&P 500 ETF (including VOO) is one of the world's largest and most established investment types; it holds all 500 stocks in the S&P 500 Index, providing exposure to all 11 GICS sectors, including Financials, Consumer Discretionary, and Industrials. To buy or sell ETFs on Saxo, you will always pay the bid/ask price, which is determined by market makers participating in the over-the-counter (OTC) market. Saxo does not charge a commission for trading ETFs.


 
 

How does the SPDR S & P 500 ETF work?


A low-cost investment fund that performs like an index fund and tracks key stock market indexes. It is designed to provide precise exposure to the S & P 500 Index. Although the fund is not actively managed, the underlying holdings and holding weights are adjusted as constituent companies in the S & P 500 change.

 

What is the difference between SPDR and the S & P 500?

The SPDR fund is an exchange-traded fund (ETF), and it trades on an exchange like a common stock. 
The S & P 500 is an unmanaged index of 500 large-cap stocks that are not investable. The two funds are essentially similar in their performance, but the way they are traded is completely different. 
 
  • What is the difference between an ETF and an SPDR?

    An ETF is an exchange-traded fund. A SPDR [pronounced "spider") is the brand name for an S & P 500 ETF. Exchange Traded Funds, or ETFs, are investment companies that are legally classified as open-end companies or unit investment trusts (UITs), but that differ from traditional open-end companies and UITs. Unlike most investment companies, ETFs do not sell shares to investors directly. Instead, investors may purchase or sell ETF shares on the secondary market through a broker-dealer. ETF shares are bought and sold at market prices (not NAV) and are not redeemed individually from the fund. Industry standard pricing is used to determine what an ETF trades at. This standard pricing mechanism uses the volume weighted average price (VWAP) as determined by the "net asset value" of portfolio holdings divided by the shares outstanding to arrive at a price point for trading for the day.
  • What is the most common winning investment strategy for new beginners?

    For new investors, the most popular and widely held ETF is the SPDR S&P 500 (SPY).It mirrors the S & P 500 by holding all of the same stocks in the same weightings as the S & P 500, so you can be confident that it will reflect the other index. The expense ratio is 0.0945, which makes it one of the cheapest ETFs available. If you are looking for a way to invest in lots of top U.S. companies without picking individual stocks, this ETF is for you.