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SPY ETF — Holdings & Analysis

The State Street SPDR S&P 500 ETF (SPY) is the oldest and one of the largest US-listed ETFs, tracking the widely followed S&P 500 index. With an impressive $775.83 billion in assets under management and a highly competitive expense ratio of 0.0900%, SPY offers broad exposure to 504 US large-cap equities. Its unique Unit Investment Trust (UIT) structure mandates full index replication and impacts dividend reinvestment, making it a favored vehicle for broad market exposure and trading liquidity.

State Street SPDR S&P 500 ETF (SPY) ETF — Price, Holdings & Analysis

The State Street SPDR S&P 500 ETF (SPY) is the oldest and one of the largest US-listed ETFs, tracking the widely followed S&P 500 index. With an impressive $775.83 billion in assets under management and a highly competitive expense ratio of 0.0900%, SPY offers broad exposure to 504 US large-cap equities. Its unique Unit Investment Trust (UIT) structure mandates full index replication and impacts dividend reinvestment, making it a favored vehicle for broad market exposure and trading liquidity.

ETF Overview

SPY is the best-recognized and oldest US listed ETF and typically tops rankings for largest AUM and greatest trading volume. The fund tracks the massively popular US index, the S&P 500. Few realize that S&P's index committee chooses 500 securities to represent the US large-cap space - not necessarily the 500 largest by market cap, which can lead to some omissions of single names. Still, the index offers outstanding exposure to the US large-cap space. It's important to note, SPY is a unit investment trust, an older but entirely viable structure. As a UIT, SPY must fully replicate its index (it probably would anyway) and forgo the small risk and reward of securities lending. It also can`t reinvest portfolio dividends between distributions, the resulting cash drag will slightly hurt performance in up markets and help in downtrends. SPY is a favored vanilla trading vehicle.
The State Street SPDR S&P 500 ETF (SPY) is designed to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500 Index. This index is a market-capitalization-weighted index of 500 leading publicly traded companies in the U.S. large-cap space, selected by an S&P committee to represent the broader market. As a Unit Investment Trust (UIT), SPY operates under a specific structure that requires it to fully replicate its underlying index, meaning it holds all 504 securities in the S&P 500 in their respective weights. This structure also means SPY cannot engage in securities lending, which some other ETFs use to generate additional income, nor can it reinvest portfolio dividends between distributions, potentially leading to a slight cash drag in rising markets. The fund is heavily weighted towards the Technology sector, which comprises 39.0% of its allocation, followed by Financial Services at 11.1% and Communication Services at 10.6%. Its top holdings, such as NVIDIA CORP (7.34%), APPLE INC (6.56%), and MICROSOFT CORP (4.36%), reflect the significant influence of large-cap technology and growth companies within the S&P 500. SPY is primarily suited for investors seeking diversified exposure to the US large-cap equity market, often serving as a core portfolio holding or a highly liquid trading instrument due to its extensive history and market recognition.

Risk Metrics

Investing in SPY carries inherent risks primarily associated with its exposure to the US large-cap equity market and its specific structural characteristics. The fund exhibits a Beta of 1.00 over the past three years, indicating its price movements generally align with the overall market, meaning it does not offer significant downside protection or upside leverage relative to the broad market. A notable concentration risk exists within SPY's portfolio, particularly in its top holdings and sector allocations. The top three holdings—NVIDIA CORP (7.34%), APPLE INC (6.56%), and MICROSOFT CORP (4.36%)—collectively represent a substantial portion of the fund, making its performance sensitive to the individual movements of these companies. Furthermore, the Technology sector dominates the fund's allocation at 39.0%, exposing investors to sector-specific downturns or regulatory changes that could disproportionately impact the ETF. While the expense ratio of 0.0900% is very low, it still represents a continuous drag on returns. The fund's Unit Investment Trust (UIT) structure also introduces a unique risk: it cannot reinvest dividends between distributions, leading to a cash drag that could slightly underperform in strong bull markets compared to ETFs that can immediately reinvest income. Past performance does not guarantee future results.

Expense Ratio

0.09%

Top Holdings

Sector Allocation

  • Technology: 39.0%
  • Financial Services: 11.1%
  • Communication Services: 10.6%
  • Consumer Cyclical: 9.9%
  • Healthcare: 8.3%
  • Industrials: 7.8%
  • Consumer Defensive: 4.5%
  • Energy: 3.1%
  • Utilities: 2.1%
  • Real Estate: 1.8%
  • Basic Materials: 1.7%
  • Cash & Others: 0.0%
  • United States: 97.7%
  • Ireland: 1.1%
  • United Kingdom: 0.5%
  • Switzerland: 0.3%
  • Other: 0.2%
  • Netherlands: 0.1%
  • Bermuda: 0.1%
  • Canada: 0.0%

Dividend Yield

0.78%

Risk Metrics

  • Beta: 1.00

Questions & Answers

What is SPY and what does it track?

SPY, officially the State Street SPDR S&P 500 ETF, is the oldest US-listed exchange-traded fund, launched on January 22, 1993. It is designed to track the performance of the S&P 500 Index, a market-capitalization-weighted index comprising 500 leading US publicly traded companies. The fund provides broad exposure to the US large-cap equity market, holding 504 securities to fully replicate its benchmark. Its structure as a Unit Investment Trust (UIT) mandates full replication of the index and impacts how it handles dividends.

What is the expense ratio for SPY?

The expense ratio for SPY is 0.0900%. This is notably low, positioning it as one of the most cost-effective options for broad US large-cap equity exposure. Compared to the typical category average for broad market equity ETFs, which often ranges from 0.30% to 0.50%, SPY's fee structure represents a significant advantage for investors seeking to minimize costs over time. This low expense ratio contributes to its appeal as a long-term core holding.

What are the top holdings in SPY?

SPY's portfolio is diversified across 504 holdings, but it exhibits significant concentration in its largest constituents. As of 2026-06-30, its top holdings include NVIDIA CORP at 7.34%, APPLE INC at 6.56%, and MICROSOFT CORP at 4.36%. Other prominent holdings are AMAZON.COM INC (3.59%) and ALPHABET INC CL A (3.12%). These top five companies collectively account for a substantial portion of the fund's assets, reflecting the market-cap weighting methodology of the S&P 500 index and the dominance of these large technology and growth firms.

Is SPY a good long-term investment?

SPY offers diversified exposure to the US large-cap equity market through its tracking of the S&P 500 index, comprising 504 companies. Its low expense ratio of 0.0900% and high liquidity are attractive features for long-term investors. Historically, the S&P 500 has been a benchmark for US market performance, and SPY provides a direct, low-cost way to participate in this segment. However, its Beta of 1.00 indicates it moves in tandem with the overall market, and its significant allocation to the Technology sector (39.0%) means its performance is heavily influenced by that sector. Past performance does not guarantee future results, and investment decisions should align with individual risk tolerance and financial goals.

How does SPY compare to similar ETFs?

SPY stands out among similar broad market ETFs primarily due to its historical significance, massive size, and unique structure. With an AUM of $775.83 billion, it is one of the largest and most liquid ETFs globally, making it a favored trading vehicle. Its expense ratio of 0.0900% is highly competitive, often matching or beating many peers tracking the same index. Unlike some newer S&P 500 ETFs, SPY is structured as a Unit Investment Trust (UIT), which mandates full index replication and prevents securities lending or dividend reinvestment between distributions, a characteristic that differentiates its operational mechanics. Its inception date of January 22, 1993, also makes it the oldest US-listed ETF, giving it a long track record.

Does SPY pay dividends?

Yes, SPY does pay dividends. The fund has a reported dividend yield of 0.78% as of 2026-06-30. As a Unit Investment Trust (UIT), SPY is required to distribute all dividends received from its underlying holdings to shareholders. However, a key aspect of its UIT structure is that it cannot reinvest these dividends back into the portfolio between distribution dates. This means that any cash received from dividends sits uninvested until the next distribution, which can result in a slight cash drag compared to ETFs that can immediately reinvest dividends.