Why Invest in the SPY ETF? Many investors use SPY to diversify a portfolio and to gain exposure to the U.S. stock market without having to buy individual stocks. The low expenses inherent with ETFs like SPY enable investors to track the S&P 500 index more closely compared to index funds with higher expenses.
Spy has much higher volume and liquidity and as a result is much better for options based strategies like writing covered calls. That's like the only real reason for SPY over VOO imo as you mentioned they are nearly identical besides expense ratio in every other way.
SPY, VOO, or IVV is a good long-term bet, but it is relatively overvalued. Dollar Cost Averaging &/or mixing in some diversity makes sense both short & long term, unless you want to spend a lot of time monitoring & analyzing your investments to try to out-guess the market.
SPX is not as liquid as SPY ie the bid/ask spread is lot wider than SPY options and it could a long time to get a fill whereas SPY options are lot more liquid due to the high volume. SPY options also has more expiration dates so it's more flexible in rolling and less risky for shorting.
SPY is more expensive with a Total Expense Ratio (TER) of 0.0945%, versus 0.03% for VOO. SPY is up 28.31% year-to-date (YTD) with +$7.13B in YTD flows. VOO performs better with 28.36% YTD performance, and +$103.99B in YTD flows.
In the past year, QQQ returned a total of 25.74%, which is slightly higher than SPY's 24.07% return. Over the past 10 years, QQQ has had annualized average returns of 18.26% , compared to 12.97% for SPY. These numbers are adjusted for stock splits and include dividends.
Index Top Holdings as of Jan 10 2025
Apple Inc. Amazon.com Inc. Tesla Inc. Broadcom Inc.
SPY Dividend Information
SPY has a dividend yield of 1.20% and paid $7.07 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Dec 20, 2024.
Buy and hold SPY in a portfolio to potentially capture long-term growth. As the world's most liquid ETF,1 SPY can help you get in and out of the market fast, easily, and at a relatively attractive cost. With SPY, you can stay invested in the broad US equity market while you determine your next investment move.
Berkshire Hathaway owns two exchange-traded funds (ETF), The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO). Both of these ETFs track the S&P 500.
It does pay a dividend, because it contains blue-chip stocks that are often reliable dividend stocks. All of the Dividend Aristocrats, a set of companies that have raised their dividends at least once a year for at least 25 years, are S&P 500 members, and thus VOO has exposure to all of them.
Who owns SPY? SPY is owned by its investors — the shareholders of the fund. When you buy shares of SPY, you become an owner of the fund and are entitled to a share of the fund's assets and earnings.
SPY, the world's most liquid ETF, trades $34 billion a day, on average. This gives investors the ability to tap into SPY's unmatched liquidity, which can help investors get in and out of markets fast, easily, and at a relatively attractive cost.
SPX and SPY: What's the difference? SPY is the stock code of exchange traded funds that track the performance of the S&P 500 index; It trades like a stock. SPX is only a value representing the level of the Standard & Poor's 500 Index and cannot be traded directly.
SPY has an expense ratio of 0.09%, which, while low, is still higher than that of VOO,'s 0.03%, one of the lowest expense ratios for S&P 500 ETFs. This makes VOO more cost-effective for long-term investors, as expense ratio differences compound over time and impact returns.
Unlike the case of a stock, in which a dividend is taxable in the year in which it is paid, the SPDR S&P 500 ETF Trust (Symbol: SPY) represents itself as a Regulated Investment Company and its dividend is deemed taxable in the year in which the record date is determined.
Apple Inc. Amazon.com, Inc. Meta Platforms, Inc. Alphabet Inc.
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for SPY ETF to perform well in the short-term.
VOO, an exchange-traded fund issued by the Vanguard Group which tracks the S&P 500.
Finally, AMAZON arrives on the Dow Jones (DIA), more than 25 years later than the Nasdaq 100 (QQQ, in 1998). It took 7 years (2005) for the S&P 500 (SPY) to include it in its index.
The all-time high SPDR S&P 500 ETF stock closing price was 607.81 on December 06, 2024. The SPDR S&P 500 ETF 52-week high stock price is 609.07, which is 4.9% above the current share price. The SPDR S&P 500 ETF 52-week low stock price is 469.87, which is 19.1% below the current share price.