ETF Research and Analysis

by Ben Johnson, CFA
Suitability
SPDR S&P 500 SPY is one of the least-expensive funds in the large-blend Morningstar Category. It offers a well-diversified, market-cap-weighted portfolio that accurately represents its target market and promotes low   Read more 

Bull Case

For decades, the S&P 500 has been a difficult hurdle for active managers to clear.
This is the most actively traded ETF by dollar volume, which helps keep bid-ask spreads small and the market price close to net asset value, reducing trading costs. Read more 

Bear Case

This fund's legal structure prohibits it from lending securities, which most index fund managers use to produce extra income that can help improve performance.
As a unit investment trust, this fund cannot reinvest dividends or purchase futures or options on the index, which may create greater tracking error. Read more 

Why Index Construction Matters for ETF Investors 
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