Why Invest in SPY?

The immense size and liquidity of SPDR® S&P 500® ETF Trust (SPY) inspires people to invest differently — delivering a variety of innovative use cases that help investors meet their investment goals.

5 Ways to Use SPY

Click on each box to discover the creative ways institutional investors and traders can invest in SPY.

1

Flexibility in Execution

The depth of SPY’s secondary market enables a wide range of execution strategies and offers implicit transaction cost benefits.

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2

Hedging

SPY can be used to hedge a portfolio from downside risks while gaining exposure to the broader stock market to help offset losses in other holdings.

3

Liquidity Management

SPY is highly liquid, so traders can invest to manage portfolio liquidity — as a source of cash for redemption requests, a liquidity sleeve, and more.

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4

Options Volume

Options can be used by institutional traders in a variety of ways. And SPY made up 45% of all ETF options volume in 2022.¹

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5

Securities Lending

Investors can use SPY as an additional source of income via securities lending — the process of loaning their ETF shares to other investors.

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SPY’s Liquidity Supports Innovative Investing Approaches

Our Global Chief Investment Officer, Lori Heinel, shares how SPY can be used beyond building resilient portfolios.

Get to Know SPY — The Market’s First US ETF

Need a refresher on SPY and its trading benefits? Find out why you should consider it for your portfolio.

Discover SPY

More on SPY’s Use Cases

SPY Capital Markets Perspective

Thirty years after its launch, SPY’s dominant position remains intact, as the most actively traded ETF in the world.²

June 15, 2023 PDF

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Footnotes

Important Risk Information

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA's express written consent.

This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.

All information is from SSGA unless otherwise noted and has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.

In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETF shares may be bought and sold on the exchange through any brokerage account, ETF shares are not individually redeemable from the Fund. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only. Please see the prospectus for more details.

Passively managed funds invest by sampling the index, holding a range of securities that, in the aggregate, approximates the full Index in terms of key risk factors and other characteristics. This may cause the fund to experience tracking errors relative to performance of the index.

The trademarks and service marks referenced herein are the property of their respective owners. Third party data providers make no warranties or representations of any kind relating to the accuracy, completeness or timeliness of the data and have no liability for damages of any kind relating to the use of such data.
This communication is not intended to be an investment recommendation or investment advice and should not be relied upon as such.

Securities lending programs and the subsequent reinvestment of the posted collateral are subject to a number of risks, including the risk that the value of the investments held in the collateral may decline in value and may at any point be worth less than the original cost of that investment.

Frequent trading of ETFs could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.

Diversification does not ensure a profit or guarantee against loss.

While the shares of ETFs are tradable on secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.

The Fund's investments are subject to changes in general economic conditions, general market fluctuations and the risks inherent in investment in securities markets. Investment markets can be volatile and prices of investments can change substantially due to various factors including, but not limited to, economic growth or recession, changes in interest rates, changes in the actual or perceived creditworthiness of issuers, and general market liquidity. The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments.