The first US-listed exchange-traded fund (ETF) has completed 30 years. Launched on January 22, 1993, SPDR S&P 500 ETF Trust is the world’s largest ETF with over $355 billion in assets and the world’s most heavily traded security, with an average daily trading volume of $39 billion. As of Feb 17 2023, the Assets Under Management of SPDR S&P 500 ETF Trust was $373,958.84 million.

SPDR S&P 500 ETF Trust also known as SPY ETF is one of the most popular ETFs that allow investors to take access to all the S&P 500 stocks in one investment. One of the most attractive features of SPY is the low expense ratio of 0.0945 per cent – the lower the ratio, the better for the investor.

Since inception, the SPY ETF has given an annualised return of 9.72% Over the last 1 – 5 and 10 years, the fund has generated -8.29%, 9.4% and 12.54% respectively. SPY ETF is up by 6.27% so far in 2023. (All returns as of Jan 31 2023.)

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SPY was created in the aftermath of the largest single-day stock market decline in history to provide investors with immediate access to a physically-backed, diversified basket of stocks. The ETF traded more than one million shares on its first day, and assets under management totalled $462 million by the end of 1993, $1 billion within three years of launch, and $100 billion before the fund’s twentieth anniversary.

Since the inception of SPY, US-listed ETFs have amassed $6.5 trillion in assets. The SPDR S&P 500 ETF primarily invests in large-cap US stocks and consists of a portfolio that includes all stocks in the S&P 500 Index.

ETFs are flexible and easy to trade on the stock exchanges during trading hours. Investors can buy and sell them like stocks, typically through a brokerage account. By purchasing SPY ETF, you gain exposure to some of the most well-known names in the US stock market. The world’s best companies, from Microsoft, Apple, and Amazon to Meta (Facebook’s parent company), Berkshire Hathaway, Visa, and many more, can be part of your portfolio. The top three sectors are information technology, health care, and communication services, which account for roughly half of the S&P 500 index.