No. of Recommendations: 0
Maybe we haven't gone around on this enough. SPY does have an annual expense ratio similar to the Vanguard Index 500 (.19%)

From www.amex.com
"A SPDR also entitles its holder to receive proportionate quarterly cash distributions corresponding to the dividends which accrue to the S&P 500 stocks in the underlying portfolio, less Trust expenses. Expenses for the SPDR Trust are anticipated to be among the lowest for investments of this type, currently at 18.45 basis points (0.185%)"

You have to do very little trading, have minimal trading fees, or have massive amounts invested to beat a low fee index fund when the SPY annual fees are nearly the same as those in the fund.

SPY is great if you are actively trading in and out of the market. I am sort of a buy and hold guy so I'm sticking with an index fund.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement