No.	Symbol	Name	% Weight	Shares
1	MSFT	Microsoft Corporation	7.29%	86,696,468
2	AAPL	Apple Inc	5.84%	170,535,538
3	NVDA	NVIDIA Corporation	5.01%	28,812,197
4	AMZN	Amazon.com, Inc.	3.75%	106,079,618
5	META	Meta Platforms, Inc.	2.52%	25,891,510
6	GOOGL	Alphabet Inc.	1.95%	69,032,867
7	BRK.B	Berkshire Hathaway Inc.	1.71%	21,223,542
8	GOOG	Alphabet Inc.	1.66%	58,099,951
9	LLY	Eli Lilly and Company	1.40%	9,301,799
10	AVGO	Broadcom Inc.	1.28%	5,120,176
11	JPM	JPMorgan Chase & Co.	1.25%	33,723,245
12	V	Visa Inc.	1.05%	18,593,936
13	UNH	UnitedHealth Group Incorporated	1.04%	10,789,173
14	TSLA	Tesla, Inc.	1.04%	32,246,718
15	XOM	Exxon Mobil Corporation	1.03%	46,730,266
16	MA	Mastercard Incorporated	0.92%	9,660,470
17	JNJ	Johnson & Johnson	0.88%	28,083,384
18	PG	The Procter & Gamble Company	0.88%	27,495,463
19	HD	The Home Depot, Inc.	0.87%	11,666,732
20	COST	Costco Wholesale Corporation	0.75%	5,165,105
21	ABBV	AbbVie Inc.	0.74%	20,595,471
22	MRK	Merck & Co., Inc.	0.70%	29,561,904
23	AMD	Advanced Micro Devices, Inc.	0.70%	18,848,369
24	CRM	Salesforce, Inc.	0.68%	11,351,032
25	CVX	Chevron Corporation	0.63%	20,480,916
26	NFLX	Netflix, Inc.	0.62%	5,106,106
27	WMT	Walmart Inc.	0.60%	49,925,745
28	ADBE	Adobe Inc.	0.60%	5,311,517
29	BAC	Bank of America Corporation	0.57%	80,319,995
30	ACN	Accenture plc	0.55%	7,321,677
31	KO	The Coca-Cola Company	0.54%	45,393,338
32	LIN	Linde plc	0.53%	5,656,769
33	PEP	PepsiCo, Inc.	0.52%	16,039,597
34	TMO	Thermo Fisher Scientific Inc.	0.52%	4,506,763
35	WFC	Wells Fargo & Company	0.48%	42,366,735
36	ABT	Abbott Laboratories	0.48%	20,246,601
37	DIS	The Walt Disney Company	0.47%	21,348,247
38	MCD	McDonald's Corporation	0.47%	8,461,766
39	CSCO	Cisco Systems, Inc.	0.47%	47,254,170
40	ORCL	Oracle Corporation	0.46%	18,534,949
41	QCOM	QUALCOMM Incorporated	0.43%	12,984,270
42	INTU	Intuit Inc.	0.42%	3,270,178
43	GE	General Electric Company	0.42%	12,697,020
44	INTC	Intel Corporation	0.42%	49,184,039
45	IBM	International Business Machines Corporation	0.41%	10,638,499
46	CAT	Caterpillar Inc.	0.40%	5,951,148
47	CMCSA	Comcast Corporation	0.40%	46,846,469
48	AMAT	Applied Materials, Inc.	0.39%	9,758,998
49	VZ	Verizon Communications Inc.	0.39%	49,044,471
50	DHR	Danaher Corporation	0.38%	7,673,512

No.

Symbol

Name

% Weight

MSFT

Microsoft Corporation

7.29%

86,696,468

AAPL

Apple Inc

5.84%

170,535,538

NVDA

NVIDIA Corporation

5.01%

28,812,197

AMZN

Amazon.com, Inc.

3.75%

106,079,618

Name	Symbol	% Assets
Microsoft Corp	MSFT	7.18%
Apple Inc	AAPL	6.17%
NVIDIA Corp	NVDA	4.56%
Amazon.com Inc	AMZN	3.75%
Meta Platforms Inc Class A	META	2.54%
Alphabet Inc Class A	GOOGL	1.91%
Berkshire Hathaway Inc Class B	BRK-B	1.74%
Alphabet Inc Class C	GOOG	1.63%
Eli Lilly and Co	LLY	1.40%
Broadcom Inc	AVGO	1.33%

SPY ETF: The SPDR S&P 500 ETF Trust and What It Holds

\nBy\n

Steven Nickolas\n

Updated July 08, 2023

\nReviewed by\n

JeFreda R. Brown\n

\nFact checked by\n

Amanda Jackson\n

Key Takeaways

The SPDR S&P 500 ETF Trust is one of the most popular funds that aims to track the S&P 500 Index, which comprises 500 large-cap U.S. stocks.
SPY was the first index exchange-traded fund listed on U.S. exchanges.
Approximately one-quarter of the SPY ETF is invested in the information technology sector.
The SPDR S&P 500 ETF Trust has generated an average annual return of just under 10% since its inception.

Understanding the SPY ETF

As noted above, the SPY ETF was established on Jan. 22, 1993. It is an exchange-traded fund (ETF) that tracks the S&P 500 Index. It is often regarded as the first ETF to be listed and remains one of the most actively traded, even with the advent of competing S&P 500 ETFs. In fact, it is considered to be the original fund that tracks the S&P 500.\n

The ETF was introduced in 1993 and had just $6.53 million in assets under management (AUM) at the time. After a rough start and some initial difficulty finding investors, it soared to more than $1 billion in AUM three years later. As of Sept. 20, 2023, the ETF trust has an extraordinary $406.6 billion in assets.\n

SPY is listed on the New York Stock Exchange\u2019s (NYSE) Arca exchange, and investors can trade this ETF on multiple platforms. The trustee of the SPDR S&P 500 ETF Trust is State Street Bank and Trust, and its distributor is ALPS Distributors. Because ETF shares trade in a similar manner to stocks, investors can buy and sell SPY shares via their broker throughout the day, including selling them short.\n

The price of a share of SPY is intended to be one-tenth that of the S&P 500 Index. So, if the S&P is at a level of 4,000, then one SPY share should trade at close to $400.\n

SPY turned 30 on Jan. 22, 2023, celebrating the milestone by remaining the largest ETF tracking the S&P 500 Index.

SPY ETF Portfolio Structure and Costs

Because of its relative age, the ETF is constructed as a unit investment trust (UIT). This means it's a fixed portfolio that forms units that can be created and redeemed with the issuer. Because of this structure, the SPY fully replicates the S&P 500 Index, holding all members of the underlying index at their target weights.\n

The SPY and other index ETFs provide investors a way to own the entire index by owning a single security for a low cost. As of Sept. 20, 2023, SPY has an expense ratio of 0.0945%. While this ratio is low, it is not the lowest among other ETFs that track the S&P 500 Index. SPY\u2019s expense ratio is more than triple the Vanguard S&P 500 ETF (VOO)\u2019s expense ratio of 0.03%. Keep in mind that these fees do not include any broker fees or commissions.
\n

Several ETFs track the S&P 500 Index. Investors looking at such an ETF should consider the expense ratio, tracking error, and liquidity of the ETF before choosing one in which to invest.

SPY ETF Top Holdings

The SPY is a well-diversified basket of assets, which allocates its holdings across multiple sectors. The top five listed below are as of Sept. 21, 2023:\n

Information Technology: 27.16%
Healthcare: 13.41%
Financials: 12.99%
Consumer Discretionary: 10.70%
Communication Services: 8.80%

The SPDR S&P 500 ETF Trust allocates almost all of its funds into common stocks, which are included in the S&P 500 Index. Its current top 10 holdings are in the following companies:\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

SPY ETF\u2019s Top 10 Holdings (as of Sept. 21, 2023)
Holding (Company)	% SPY Portfolio Weight
Apple (AAPL)	7.05%
Microsoft (MSFT)	6.54%
Amazon (AMZN)	3.24%
NVIDIA (NVDA)	2.79%
Alphabet\u2014Class A (GOOGL)	2.13%
Tesla (TSLA)	1.95%
Alphabet\u2014Class C (GOOG)	1.83%
Berkshire Hathaway\u2014Class B (BRK.B)	1.83%
Meta Platforms\u2014Class A (META)	1.81%
UnitedHealth (UNH)	1.28%

Source: State Street Global Advisors

SPY ETF Performance

With a four-star Morningstar rating, SPY\u2019s returns have closely tracked the S&P 500, an index that has bested the average return of other large-blend funds in the past decade. The SPDR S&P 500 ETF Trust (SPY) has generated an average three-year return of 15.79% as of Aug. 31, 2023. Based on trailing 10-year data, the fund generated average annual returns of 12.66%. Since the inception of the SPDR S&P 500 ETF Trust, the fund achieved average annual returns of 9.92%.\n

This, of course, tracks the S&P 500\u2019s performance with a beta of nearly 1.00. What is important to note is that the SPY ETF, as it fully replicates the index, has a very low relative tracking error\u2014just -0.03% as of Aug. 31 2023.
\n

SPY Turns 30

The SPY celebrated its 30th birthday on Jan. 22, 2023, by remaining the preeminent S&P 500 ETF despite having higher management fees compared to its younger rivals. While the SPY wasn\u2019t a new strategy when it launched in 1993, it provided a revolutionary way to invest by trading similarly to a stock on an exchange.\u00a0\n

Apart from a first-mover advantage, several factors have cemented the SPY\u2019s longevity:\n

The fund has benefited from a growing transition to passive investment management. Although active management funds have taken the lion\u2019s share of net inflows over much of the last 30 years, that trend switched in 2018.\u00a0In 2021, the U.S. equity fund market share in passive funds reached 54%, partly due to the SPY\u2019s successful long-term track record and growing AUM.
The S&P\u2019s stellar performance, driven by large-cap technology stocks in the mid-to-late 1990s and after the Great Recession, helped the SPY to continue attracting further inflows. From 1995 to 1999, the blue-chip index gained an average of 28% per year, while from 2009 to 2022, it gained more than 400%.

The ETF\u2019s $406.6 billion asset base, coupled with an average daily trading volume (ADTV) of around $28.5 billion, makes the fund popular with investors who want cost-effective exposure to the S&P 500 and traders who seek deep liquidity. The SPY\u2019s broad appeal assures that it will remain at the forefront of financial markets for the foreseeable future.
\n

Does the SPDR S&P 500 ETF Trust Pay a Dividend?

Yes. As of Sept. 20, 2023, the 12-month distribution yield for SPY is 1.48%.

Is SPY a Stock or Exchange-Traded Fund?

The SPY is an ETF. This is the broad name for a kind of security that aggregates or tracks multiple stocks within an index, industry, or another grouping. SPDRs are a specific type of ETF issued by State Street Global Advisors that tracks a certain index, such as the S&P 500. While ETFs may trade like ordinary shares of stock, they represent a portfolio of stocks and not just one company.

What Does SPDR Stand For?

SPDR stands for Standard & Poor\u2019s Depositary Receipt. SPDR ETFs have a fixed number of shares that are exchanged and traded like stocks on the open market.

Is the SPDR S&P 500 ETF Trust a Good Investment?

Yes. The SPY ETF diversifies exposure to the U.S. equity market and is suitable for investors willing to take on a moderate level of risk. Since it tracks the S&P 500 Index, it is often a suitable choice for those seeking passive index investing.

How Much Money Is Invested in the SPY?

As of Sept. 20, 2023, the SPY has roughly $406.6 billion in assets under management.

The Bottom Line

The SPDR S&P 500 ETF Trust offers investors an efficient way to diversify their exposure to the U.S. equity market without having to invest in multiple stocks. Therefore, the SPY is suitable for any investors who want to include U.S. equities in their portfolio while taking only a moderate level of risk.\n

That being said, since the SPDR S&P 500 ETF Trust tracks 500 large-cap stocks in the United States, it carries a multitude of risks, such as market risk, country risk, currency risk, economic risk,\u00a0and interest rate risk. Investors should be aware of both world and U.S. economic data, which could affect the performance of the fund.
\n

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our\neditorial policy.

State Street Global Advisors. \u201cSPDR\u00ae S&P 500\u00ae ETF Trust: SPY.\u201d
State Street Global Advisors. "SPY: The Original S&P 500\u00ae ETF."
U.S. Securities and Exchange Commission. \u201cSPY: The Idea That Spawned an Industry.\u201d
U.S. Securities and Exchange Commission. \u201cSpiders (SPDRs).\u201d
ETF Database. "Largest ETFs: Top 100 ETFs by Assets."
Vanguard, Personal Investors. \u201cVOO: Vanguard S&P 500 ETF.\u201d
Morningstar. \u201cSPDR\u00ae S&P 500 ETF Trust: SPY.\u201d
ETF.com. \u201cSPY: SPDR S&P 500 ETF Trust.\u201d
Fidelity Investments. \u201cKey Statistics: SPY.\u201d
OfficialData.org. \u201cStock Market Returns Between 2009 and 2022.\u201d
CNBC. \u201cThe First ETF Is 30 Years Old This Week. It Launched a Revolution in Low-Cost Investing.\u201d

Ready to Take the Next Step?

The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.

Ready to Take the Next Step?

SPY Holdings List

SPY Holdings Information

Sector Breakdown

Countries Breakdown

Breakdown By Smart Score

SPY ETF FAQ

Get More with TipRanks Premium

SPY SPDR S&P 500 ETF Trust

S&P Futures
5,186.25
+3.50(+0.07%)

Dow Futures
39,128.00
-25.00(-0.06%)

Nasdaq Futures
18,082.75
+24.00(+0.13%)

Russell 2000 Futures
2,063.10
-0.20(-0.01%)

Crude Oil
81.04
0.00(0.00%)

Gold
2,158.30
-3.20(-0.15%)

SPDR S&P 500 ETF Trust (SPY)

Overall Portfolio Composition (%)

Sector Weightings (%)

Equity Holdings

Bond Ratings

Top 10 Holdings (32.21% of Total Assets)

SPY ETF: The SPDR S&P 500 ETF Trust and What It Holds

Key Takeaways

Understanding the SPY ETF

SPY ETF Portfolio Structure and Costs

SPY ETF Top Holdings

SPY ETF Performance

SPY Turns 30

Does the SPDR S&P 500 ETF Trust Pay a Dividend?

Is SPY a Stock or Exchange-Traded Fund?

What Does SPDR Stand For?

Is the SPDR S&P 500 ETF Trust a Good Investment?

How Much Money Is Invested in the SPY?

The Bottom Line

SPY Holdings List

SPY Holdings Information

Sector Breakdown

Countries Breakdown

Breakdown By Smart Score

SPY ETF FAQ

Get More with TipRanks Premium

SPY SPDR S&P 500 ETF Trust

Top Searches

Top News

Popular Topics

Top ETFs

Featured Funds

Latest News on SPY

S&P Futures5,186.25+3.50(+0.07%)

Dow Futures39,128.00-25.00(-0.06%)

Nasdaq Futures18,082.75+24.00(+0.13%)

Russell 2000 Futures2,063.10-0.20(-0.01%)

Crude Oil81.040.00(0.00%)

Gold2,158.30-3.20(-0.15%)

SPDR S&P 500 ETF Trust (SPY)

Overall Portfolio Composition (%)

Sector Weightings (%)

Equity Holdings

Bond Ratings

Top 10 Holdings (32.21% of Total Assets)

Key Takeaways

Understanding the SPY ETF

SPY ETF Portfolio Structure and Costs

SPY ETF Top Holdings

SPY ETF Performance

SPY Turns 30

Does the SPDR S&P 500 ETF Trust Pay a Dividend?

Is SPY a Stock or Exchange-Traded Fund?

What Does SPDR Stand For?

Is the SPDR S&P 500 ETF Trust a Good Investment?

How Much Money Is Invested in the SPY?

The Bottom Line

S&P Futures
5,186.25
+3.50(+0.07%)

Dow Futures
39,128.00
-25.00(-0.06%)

Nasdaq Futures
18,082.75
+24.00(+0.13%)

Russell 2000 Futures
2,063.10
-0.20(-0.01%)

Crude Oil
81.04
0.00(0.00%)

Gold
2,158.30
-3.20(-0.15%)