BOSTON--(BUSINESS WIRE)--State Street Global Advisors, the asset management business of State Street Corporation (NYSE: STT), today marked the 25th anniversary of the first ever US-listed exchange traded fund (ETF), the SPDR S&P 500 ETF (Symbol: SPY). Launched on January 29, 1993 with $6.5 million in assets, SPY is currently the world’s largest ETF with more than $302 billion1 in assets and the most traded security in the world with an average daily trading volume of $25 billion.
“SPY’s launch paved the way for a breakthrough industry that has improved access to every asset class and dramatically lowered costs for investors,” said Jim Ross, chairman of State Street Global Advisors’ Global SPDR Business and a member of the team that launched SPY in 1993. “In a relatively brief period of time, ETFs have fundamentally improved investing while amassing over $4 trillion of assets. Despite this unprecedented growth, the impact of ETFs during the next 25 years promises to be even more influential than it has been the last two-plus decades.”
Developed in the wake of the largest single-day stock market decline in history, SPY was designed to provide investors with immediate access to a physically-backed, diversified basket of stocks. The ETF traded over one million shares on the first day of trading, and assets under management totaled $462 million by the end of 1993, $1 billion within three years of launch and $100 billion before the fund’s 20th anniversary2.
“For a quarter century and through the volatile markets of 2001 and 2008, SPY has provided investors, advisors and institutions with unmatched access to US stocks,” said Nick Good, co-head of State Street Global Advisors’ Global SPDR Business. “While there are now more than 6,000 ETFs available to investors across the world, none offer investors the same liquidity or resilience as SPY.”
Key Facts on the SPDR S&P 500 ETF
- SPY accounts for 28% of the ETF industry’s total average daily trading volume3
- SPY is the only ETF that has traded at a penny-wide spread for more than 12 consecutive years4
- SPY has outperformed 80% of active large cap managers over the last three, five and 10-year periods5
- With an average daily trading volume of nearly $25 billion, SPY trades 4.7 times more than the largest security in the world by market cap6
For more information on SPY’s origins and impact, visit https://us.spdrs.com/en/ad/spy-home-ad
About SPDR Exchange Traded Funds
SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs are managed by SSGA Funds Management, Inc., a registered investment adviser and wholly owned subsidiary of State Street Corporation. The funds provide investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as an industry pioneer, State Street created the first US listed ETF in 1993 (SPDR S&P 500® – Ticker SPY) and has remained on the forefront of responsible innovation, as evidenced by the introduction of many ground-breaking products, including first-to-market launches with gold, international real estate, international fixed income, and sector ETFs. For more information, visit www.spdrs.com.
About State Street Global Advisors
For nearly four decades, State Street Global Advisors has been committed to helping financial professionals and those who rely on them achieve their investment objectives. We partner with institutions and financial professionals to help them reach their goals through a rigorous, research-driven process spanning both active and index disciplines. We take pride in working closely with our clients to develop precise investment strategies, including our pioneering family of SPDR ETFs. With trillions* in assets under management, our scale and global footprint provide unrivaled access to markets and asset classes, and allow us to deliver expert insights and investment solutions.
State Street Global Advisors is the investment management arm of State Street Corporation.
*Assets under management were $2.78 trillion as of December 31, 2017. AUM reflects approx. $35 billion (as of December 31, 2017) with respect to which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
ALPS control number: SPD001553
ALPS Distributors, Inc., member FINRA, is distributor for SPDR S&P 500, a unit investment trust. ALPS Distributors, Inc. is not affiliated with State Street Global Advisors Funds Distributors, LLC (marketing agent).
Important Risk Information
Before investing, consider the funds' investment objectives, risks, charges and expenses. To obtain a prospectus or summary prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com. Read it carefully before investing.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Investing involves risk including the risk of loss of principal.
It is not possible to invest in an index.
There can be no assurance that a liquid market will be maintained for ETF shares. Frequent trading of ETF could significantly increase commissions and other costs such that they may offset any savings from low fees or costs.
Passive management and the creation/redemption process can help minimize capital gains distributions.
While the shares of ETFs are tradeable on the secondary markets, they may not readily trade in all market conditions and may trade at significant discounts in periods of market stress.
Standard & Poor’s®, S&P® and SPDR® are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); and these trademarks have been licensed for use by S&P Dow Jones Indices LLC (SPDJI) and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and third party licensors and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability in relation thereto, including for any errors, omissions, or interruptions of any index.
State Street Global Advisors Funds Distributors, LLC, member FINRA, SIPC, an indirect wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.
1 Source: Bloomberg Finance L.P. : 1/25/2018
2 Source: State Street Global Advisors as of 12/31/17
3 Source: Bloomberg Finance L.P. : 12/31/2017
4 Source: Bloomberg Finance L.P. : 12/31/2017
5 Source: Morningstar as of 12/31/2017. Over the 3, 5, and 10-year annualized returns for active funds in the Morningstar Large Cap Category (oldest shares of multi-class funds), SPY ranked in the top quintile. All rankings are based on returns after taxes on distributions that are net of all fees, maximum federal tax rate and applicable sales loads. Total universe is 258 funds for 10 years (27 out of 258 funds), 313 funds for 5 years (SPY 25 out of 313 funds), and 339 funds for 3 years (SPY 20 out of 339 funds). SPY’s 1 year peer group percentile is 24% (SPY 70 of 376 funds), also based on an annualized total return of active funds within the Morningstar Large Cap Blend Category. Past performance is no guarantee of future results. Funds did not outperform for all periods.
6 Source: Bloomberg Finance L.P. : 12/31/2017