State Street's Triple Play: Capturing the U.S. Broad Market Benchmarks

Many funds track the same indexes. Structural and management differences such as fee structures and composition make products far from interchangeable. Investors can potentially optimize their portfolios by choosing between different funds for the same index. For example, selecting SPY for high liquidity and active trading or SPYM for cost-efficient, long-term holding.

State Street is the first firm to offer distinct ETFs tracking all three major U.S. benchmarks—the S&P 500, the Dow Jones Industrial Average, and the Nasdaq-100—providing a complete suite of index-based strategies for investors.

State Street exemplifies this complexity, serving as the first ETF manager offering distinct ETFs that track the three major U.S. benchmarks: the Dow Jones Industrial Average, the S&P 500, and the NASDAQ-100. “With its recently expanded lineup, State Street Investment Management has given ETF investors an array of index based equity strategies to consider. However, understanding what makes them different is paramount,” said Todd Rosenbluth, Head of Research at TMX VettaFi.

Serving as the oldest and most frequently traded ETF in the world, the State Street SPDR S&P 500 ETF (SPY) comes with an expense ratio of 9 basis points and tracks the S&P 500 providing investors exposure to the 500 largest U.S. companies based on market capitalization. SPY operates under an older Unit Investment Trust (UIT) legal structure, preventing the fund from directly reinvesting cash dividends.