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.
The S&P 500 index dropped 1.6% over the past week, falling below its 50-day moving average for the first time since July 17, 2026. Despite this weekly loss, the index remains up 8.9% year-to-date, though it is currently 2.0% below its record high fro...
The dominance of the Magnificent Seven tech stocks has increased concentration risk in many portfolios. To reduce this risk without losing exposure to U.S. growth, investors can consider ETFs like Invesco S&P 500 Equal Weight (RSP), Schwab U.S. Large...
The Global X S&P 500 Covered Call ETF (XYLD) generates monthly income by selling one-month call options on the S&P 500 and distributing the premiums to shareholders. This strategy produces a high yield, around 10.3% trailing, but the income fluctuate...
In 2026, alternative ETFs have attracted nearly $30 billion in net new assets as investors seek diversification amid high market concentration and positive equity-to-bond correlations. Strategies like the iShares Systematic Alternatives Active ETF (I...
Global X S&P 500 Covered Call ETF (XYLD) offers monthly income by selling at-the-money calls on the S&P 500, but this strategy limits upside gains. Over the past five years, XYLD returned 45.15%, well below the S&P 500's 73.34% price gain, reflecting...
