Should You Stay Away From SPDR S&P 500 ETF Trust (NYSEARCA:SPY)?
SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is an exchange traded fund which has accumulated market cap of $165.44 billion. This fund tries to mirror the returns and gains which are provided by the larger S&P 500 index. Readers would know that the S&P 500 index tracks those 500 large caps firms which are publicly traded in U.S which have managed to post steady profits and grow their share holder value over a long period of time. The Exchange traded fund specifically targets its investment in stock which are in the “information technology, financials, energy, health care, consumer staples, industrial s, consumer discretionary, materials, utilities and telecommunication services” sector.
Over the short term the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) fund has been struggling to retain positive valuations. In the past week, it has plummeted by a 1.2 percent margin in complete contrast to the gains which were posted by the larger S&P 500 index. But when the returns posted by this ETF over the mid to long term is considered, it comes across as being moderately successful. In the past quarter, it has posted net gains of 5.2 percent while over the past 180 days it has posted gains of 9.2 percent. This appreciation moves into the double digits when the investment window is looked at in a 365 day period.
During trading yesterday, the stock of SPDR S&P 500 ETF Trust (NYSEARCA:SPY) was marginally up by a small 0.62 percent. When trading was suspended at the end of the day, the stock price had settled down at $179.22 per share which is just 1.39 percent below its prior 52 week high price point. The ETF has paid out dividend of $3.3 per share which translates to a dividend yield of 1.86 % for the year.