You Asked, We Answered: More Low-Cost S&P® Exposures
Our low-cost suite now offers greater access to the core benchmarks you prefer. SPDR® is the only ETF provider to offer low-cost exposure to the S&P 500®, S&P MidCap 400®, S&P SmallCap 600®, and S&P Composite 1500®—as well as S&P 500® Growth, Value and Dividend styles. These funds are among the lowest cost in the industry—including an S&P 500 offering at only 3 basis points (bps).1
A strong flexible portfolio begins with the core. It provides a stable foundation to pursue specific investment goals—from managing risk and generating income to growing capital through diversification.
But core investing shouldn’t be costly. Instead, investors should have confidence that they aren’t overpaying for returns in the largest part of their portfolio.
The best core holdings offer:
Diversification ETFs usually track an index, so investors can get a basket of holdings in one simple trade
Low cost ETFs generally have lower fees than mutual funds, making them ideal for a core portfolio
Liquidity ETFs trade daily on exchange, and have multiple layers of liquidity through the unique creation/redemption mechanism, enabling investors to get in and out of their investment whenever the market is open
Transparency Investors can see exactly what is included in an ETF on a daily basis
Tax efficiency Investors typically are taxed only upon selling an ETF investment, whereas mutual funds incur such burdens over the course of the investment
These attributes may make ETFs an ideal core holding.
Asset allocation—the mix of stocks, bonds and cash in a portfolio—explains 90% of the variance in portfolio returns.2 Changing the weighting of these investments alters the risk profile of a portfolio, and therefore the potential return.
Allocate with Ease for Any Risk Appetite
With as few as three low-cost SPDR Portfolio ETFs, investors can easily build a diversified core portfolio of stocks and bonds. From conservative to aggressive allocations, the following five risk-based examples can be tailored to meet different investment objectives—each with a weighted-average cost just under 4 basis points (bps).