The SPY stock price is a widely watched indicator of the market cap of US large and mid-cap companies. The index is composed of 500 stocks selected by the S&P Committee. SPY is one of the most widely traded ETFs and typically ranks among the top three in the rankings for trading volume and AUM. It tracks the S&P 500 index, which is a popular benchmark that offers exposure to the large-cap sector of the U.S. economy. Because SPY is a unit investment trust, it must fully replicate the index to make any returns. The SPY has more than US$350b in assets and is considered a highly trusted investment in large-cap stocks.
SPY was the first exchange-traded fund (ETF) to be listed on a U.S. stock exchange. Its broad index makes it a popular choice among investors, primarily because of its diversified holdings. The index includes 500 companies in every major market sector. Some of the companies included in the SPY ETF’s portfolio include Apple, Pfizer, and Exxon Mobil.
