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Sunday, 16 September 2012

SPY: The One That Started It All | ETFS - TradersHuddle.com

SPY: The One That Started It All | ETFS - TradersHuddle.com

1 comment:

RAYLOKE said...

THE BIG DIFFERENCE; ...That’s a major difference between the S&P 500 and the Dow Jones Industrial Average. As we mentioned when we highlighted the SPDR Dow Jones Industrial Average (NYSE: DIA), the Dow is a price-weighted index, meaning the highest priced stock, not the largest company, represents the biggest percentage of the Dow’s weight. On the other hand, the S&P 500 is cap-weighted, meaning its constituents are weighted in order from largest to smallest and this probably explains one reason why the S&P 500, not the Dow, is preferred among professional traders and money managers.



SPY charges just 0.0945%, which is rock bottom, but investors can find even lower fees with the iShares S&P 500 Index Fund (NYSE: IVV). If 0.09% still isn’t good enough, try the Vanguard S&P 500 ETF (NYSE: VOO), which debuted less than two years ago. VOO’s expense ratio is an incredible 0.06%.