Spiders (SPDR)
A short form of Standard & Poor's Depository Receipt, an exchange-traded fund that tracks the S&P 500 Index
Each share of a spider contains one-tenth of the S&P index and trades at roughly one-tenth of the dollar-value level of the S&P 500. Investopedia Says:
Spiders are listed on the American Stock Exchange under the ticker symbol SPY. By trading like stocks, spiders have continuous liquidity, can be short sold, bought on margin, provide regular dividend payments and incur regular brokerage commissions when traded.
Spiders are used by large institutions and traders as bets on the overall direction of the market. They are also used by individual investors who believe in passive management (index investing). In this respect, spiders compete directly with S&P 500 Index funds. Related Terms:
American Depositary Receipt - ADR
American Stock Exchange - AMEX
Dividend Yield
ETF Wrap
Exchange-Traded Fund - ETF
Standard & Poor's 500 Index - S&P 500
Uptick Rule |