This investment is part of Buffett's portfolio.
The SPDR S&P 500 ETF (SPY) was launched on 01/29/1993, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
SPDR S&P 500 ETF Trust crosses $600 billion in AUM -a first for any ETF. Let's delve into its success story.
It's a great day to be an investor in SPY, the SPDR S&P 500 ETF Trust. As of market close on Oct. 15, 2024, SPY became the world's first ETF to surpass $600 billion in assets under management.
The S&P 500 NYSEARCA: SPY defies the odds and mounting risks to continue its trend. The market broke above critical support in late September and is on track to reach bull case targets near 6,000 by the year's end.
The major market indices continue to hit all-time highs, and investors have more of their investments allocated to equities than at any time since the Internet Boom era ended. This is happening just as the S&P 500, a good proxy for the overall market, has become substantially overvalued using various traditional valuation metrics.
Time is on your side with this Buffett-owned exchange-traded fund.
Though perhaps not as trendy as they were years ago, exchange-traded funds (ETFs) are nonetheless a core investment vehicle—and still an exceedingly popular one, at that. As of 2023, there were more than 10,000 ETFs listed across the globe, up by nearly a quarter from just three years earlier.
You can build a million-dollar nest egg by following these steps.
Despite fears of an AI bubble, current financial robustness and valuation of companies suggest we are not in a bubble. The reduction in euphoria over AI companies' results combined with the strong rise in the S&P 500 are not signs of a bubble. The S&P 500's valuation is stretched, and a regression to a 15x P/E ratio could present a good buying opportunity.
The S&P 500 is on its way for yet another successful year with year-to-date return of 22%. With valuations once again at record highs and bond yields sitting well above their 2021 values, upside from here appears limited. Investors buying the SPY should also consider the ETF's higher risk exposure.
The S&P 500 wrapped up its best quarter since the fourth quarter of 2021. We have highlighted five stocks that led the ETF and have a solid Zacks Rank.