SPDR® S&P 500 ETF Trust is the original--the first-ever exchange-traded fund listed in the United States. But its first-mover advantage has eroded with time. Today, there are less-expensive options that also benefit from superior structures. As a unit investment trust, the fund cannot use the same tactics as its peers to add value for its shareholders. Namely, it cannot reinvest dividends or engage in securities lending to earn additional income for shareholders. Nonetheless, a broadly diversified and category-representative index, and a low fee relative to Morningstar Category peers, are more than sufficient to earns the fund a Morningstar Analyst Rating of Silver.
SPDR® S&P 500 ETF Trust SPY
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will SPY outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable SPY’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the SPY management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of SPY’s parent organization’s priorities and whether they’re in line with investors’ interests.
The original U.S. large-cap ETF, but now there are better options.
