Question by PLUNGERMONKEY: define stock-market “SPDR”?
Best answer:
Answer by Mark
“Spiders” is the name given to ‘exchange-traded’ funds that attempt to mimic the performance of the S&P 500 (which is simply an index based on the performance of a basket of 500 stocks that reflect how the broader market is doing), or the performance of a subset of the S&P 500 that are in related businesses.
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SPDR offers two primary products. The first product, and best product, is SPY which emulates the S&P 500 index. The second products are the individual sector ETFs that make up the SPY.
It provides instant diversification and low fees. Compare SPY to VTI.
SPDR – Standard & Poor’s Depositary Receipts – are exchange traded funds that represent ownership in the SPDR Trust, a unit investment trust.
S&P 500 ETF Standard & Poor’s Depositary Receipts – are exchange traded funds that represent ownership in the SPDR Trust, a unit investment trust