The SPDR S&P 500 ETF (SPY) charges a 0.0945% fee, significantly higher than the 0.02% fee of its sibling fund SPDR Portfolio S&P 500 ETF (SPYM), despite both tracking the same 500 stocks with identical weights. SPY's structure as a unit investment trust causes additional hidden costs, such as delayed dividend reinvestment and no securities lending income, reducing its returns compared to SPYM. Over five and ten years, SPYM has outperformed SPY due to lower fees and better structural features. While SPY offers superior liquidity and options markets, long-term investors may prefer SPYM to save on fees without sacrificing exposure.
Federal Reserve official Kevin Warsh is set to deliver a crucial speech at Jackson Hole, which could significantly impact bond markets and the S&P 500. Investors are wary as recent Treasury buybacks and hotter-than-expected inflation have increased m...
SPY call options are currently cheap and present a strategic way to gain exposure to the S&P 500 given multiple upcoming catalysts, including Nvidia's earnings report, potential trade tensions with Canada, and Treasury bond buybacks. Rising Treasury ...
