How SPY (SPDR S&P 500 ETF Trust) Works
The first and most heavily traded US exchange-traded fund, tracking the S&P 500 Index with unmatched options liquidity and reliable quarterly dividend distributions.
Payout Schedule: Goes ex-dividend on the third Friday of March, June, September, and December, paying out at the end of the following month.
Dividend Track Record: Launched in January 1993, SPY has paid uninterrupted quarterly dividends for over three decades.
Strengths & What to Watch Out For (SPY)
✓ Strengths
- •Deepest trading and options liquidity in the global equity market
- •Three decades of S&P 500 dividend growth and capital appreciation
- •Qualified dividend tax treatment
⚠ Common Mistakes & Risks
- •0.0945% expense ratio is roughly 3x higher than VOO or IVV (0.03%)
- •Structured as a Unit Investment Trust (UIT), so it cannot internally reinvest dividends between payout dates