What Is SPY Stock? The Original S&P 500 ETF Explained
SPY is the SPDR S&P 500 ETF Trust with $791.56 billion AUM that tracks the S&P 500 index as of June 18 2026
Updated June 2026Expert ReviewedInvestSnips Data
504Total Holdings
$791.56 BillionAssets Under Management
0.09%Expense Ratio
January 22 1993Inception Date
For informational purposes only. Not investment advice. Data from public ETF filings updated regularly.
SPY stock is the ticker symbol for the SPDR S&P 500 ETF Trust the first U.S.-listed ETF launched on January 22 1993 that tracks the S&P 500 index with NVIDIA currently the top holding at 7.96%.
This page explains exactly what SPY is its top 10 holdings full sector breakdown and critical details competitors miss such as its Unit Investment Trust structure that creates cash drag prevents securities lending and includes a legal expiration date of January 22 2118 while delivering unmatched $62 billion daily liquidity for traders.
Key Facts
What You Need to Know
01SPY’s 2118 Expiration Date
SPY as a Unit Investment Trust has a legal termination date of January 22 2118 or 20 years after the death of the last survivor of eleven specific individuals named in the 1993 trust documents. These eleven were mostly babies born between 1990 and 1993 linked to the American Stock Exchange. This tontine-style clause is a bizarre relic that modern open-ended ETFs like VOO do not have.
02No Securities Lending Revenue
SPY’s UIT structure legally forbids lending shares to short sellers unlike VOO or IVV. This eliminates counterparty risk but means SPY misses out on lending income that helps competitors reduce their effective costs. The result is SPY’s 0.09% expense ratio which equals $9 per year on a $10,000 investment versus 0.03% for VOO and SPLG.
03Dividend Cash Drag Effect
SPY cannot reinvest dividends immediately from holdings like Apple or Microsoft. Cash must sit in a non-interest-bearing account until quarterly distribution. This creates 1-2 basis points of annual underperformance versus VOO in bull markets. For long-term holders this drag plus the higher fee makes VOO or SPLG better choices.
04Liquidity King for Traders
SPY averages massive daily trading volume that delivers penny-wide spreads saving high-volume traders and options players far more than its 0.06% extra expense ratio costs. Institutions and short-term traders prefer SPY while buy-and-hold retirement investors should choose lower-cost alternatives like VOO or SPLG for better net returns.
Portfolio
What Is SPY Stock? The Original S&P 500 ETF Explained — Top Holdings
Click any column to sort. Holdings and weights updated June 2026.
#
Company
Ticker
Weight %
Sector
1
NVIDIA Corp
NVDA
7.96%
Information Technology
2
Apple Inc.
AAPL
6.71%
Information Technology
3
Microsoft Corp
MSFT
4.58%
Information Technology
4
Amazon.com Inc
AMZN
3.70%
Consumer Discretionary
5
Alphabet Inc. Class A
GOOGL
3.34%
Communication Services
6
Broadcom Inc.
AVGO
2.88%
Information Technology
7
Alphabet Inc. Class C
GOOG
2.67%
Communication Services
8
Meta Platforms Inc.
META
2.00%
Communication Services
9
Micron Technology
MU
1.89%
Information Technology
10
Tesla Inc.
TSLA
1.78%
Consumer Discretionary
Source: ETF issuer public filings. Weights approximate and subject to change.
Allocation
Sector Breakdown
Sector
Weight %
Information Technology
38.01%
Financials
11.75%
Communication Services
10.11%
Consumer Discretionary
9.40%
Industrials
8.58%
Health Care
8.51%
Consumer Staples
4.70%
Energy
3.09%
Utilities
2.13%
Materials
1.89%
Real Estate
1.85%
Common Questions
Frequently Asked Questions
SPY is a Unit Investment Trust with a 0.09% expense ratio and $791.56 billion AUM while VOO is an open-ended ETF with a 0.03% expense ratio. SPY offers superior liquidity with roughly $62 billion daily volume ideal for traders and options but suffers cash drag because it cannot reinvest dividends immediately. VOO provides better long-term performance for buy-and-hold investors due to immediate dividend reinvestment and lower fees equaling only $3 per year on a $10,000 investment.
SPY pays dividends quarterly rather than monthly. Due to its UIT structure dividends received from underlying companies are held as cash until the distribution date creating minor cash drag in rising markets. The yield aligns closely with the S&P 500 average and for taxable accounts these quarterly payouts create tax liabilities unlike tax-deferred retirement accounts where the impact is minimized.
SPY tracks the S&P 500 across 504 holdings providing broad diversification but it experienced a -24.50% maximum drawdown in recent years and carries full market risk. Beginners benefit from its liquidity and low 0.09% expense ratio of $9 per year on $10,000 but should consider holding periods longer than one year in diversified portfolios. For true long-term safety many experts including Warren Buffett recommend low-cost S&P 500 exposure like SPY in retirement accounts.
SPY charges 0.09% annually while IVV charges 0.03% primarily because SPY’s Unit Investment Trust structure prevents securities lending revenue that offsets costs in open-ended funds. This equals an extra $6 per year on a $10,000 investment for SPY. The higher fee is justified for traders by SPY’s unmatched daily volume and tight spreads but makes IVV or SPLG preferable for passive long-term investors.
SPY holds 504 stocks mirroring the S&P 500 with top positions as of June 18 2026 including NVIDIA at 7.96% Apple at 6.71% and Microsoft at 4.58%. Information Technology makes up 38.01% of the fund. The full list is updated daily by State Street with the next rebalance effective June 19 2026 adjusting weights to match index changes.
One share of SPY trades near the S&P 500 index level divided by ten typically around $500 to $600 depending on current market prices as of June 18 2026. With $791.56 billion AUM and massive liquidity spreads are often just one penny. Brokerage commissions are zero at most platforms making the true cost the 0.09% annual expense ratio plus any bid-ask spread which remains minimal due to high volume.
SPY cannot realistically go to zero because it holds 504 large U.S. companies diversified across all sectors with Information Technology at 38.01%. Even in severe crashes like 2008 it recovered over time. However as an equity ETF it can experience large drawdowns such as -24.50% in recent periods. Its legal structure includes a termination date in 2118 but full market risk remains for investors.
SPY has delivered approximately 10% average annual returns over long periods mirroring the S&P 500 minus its 0.09% expense ratio. The 10-year annualized return sits near 15% with dividends contributing 1.3% to 2.7% annually. Past performance includes strong years like +31% and downturns like -18% in 2022 with dividend reinvestment boosting compounding for long-term holders despite the cash drag from its UIT structure.
Last updated June 2026 · InvestSnips Editorial · Data from public ETF filings
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