Boston, MA 06/09/2014 (wallstreetpr) – An exchange traded fund listed on NYSE Arca, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is a type of fund that is used to keep the performance record of S&P 500 index. Main objective of SPY is to facilitate with investing results that are coinciding with prices and returns of S&P 500 index. It does so by roughly duplicating the stocks in S&P 500.
Holding Information
The main reason behind the impressive performance of SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is because of the holding proportion of the fund consists of some of the top performing equities. Apple Inc. Has a 3.34% weight in SPY’s holdings and its share prices have gone up by 10.3% in this last month. Exxon Mobile Corporation, with 2.51% of SPY holdings has been somewhat the same in the past month. Other important holdings of SPY like Microsoft Corporation, Johnson & Johnson and General Electric Company were 5%, 2.3% and about 3% up in the preceding month. Hence, we observe that the improved performance of SPY is a combined effort of all its holdings.
Past Performance
SPY’s performance in the latest month has been quite impressive as it broke all trading ranges with all time high of $193.43 on June 6th, 2014. It has been following a long term uptrend since Feb, 2009. Dividends declared by SPY ever since have increased from $0.52 to $0.82 giving a massive 58% gain to investors. Clearly, those who have invested in SPY for a long term are quite satisfied with the fund’s performance. SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has jumped up by 2.35% in May, leading to a 4.5% rise over the year. SPY also revealed a growth of about 37% in sales and thereafter the dividends grew at about 19% in the past 1 year.
Conclusion
Clearly, SPDR S&P 500 ETF Trust (NYSEARCA:SPY) provides with a profitable option to invest in, especially for those who are willing to invest in exchange traded funds and those who are nervous about making investments in S&P 500 index. Since SPY proves to be a good and a prominent proxy for the index only with a beta as low as 0.99 and a 1.79% dividend yield.
