MAX:
Everything you wanted to know about SPDRS...
What are SPDRs?
SPDRs are very straightforward. They represent ownership in the SPDR Trust, a unit investment trust which holds a portfolio of common stocks that closely tracks the price performance and dividend yield of
the S&P 500 Index. So it's reasonable to expect the market value of a SPDR to rise and fall as the S&P 500 rises and falls.
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%)
Like a stock, A SPDR can be held over the long term. Of course, investors are always able to initiate and close out SPDR positions by trading throughout the trading day on the American Stock Exchange with
the same ease and efficiency as trading stocks.
The sponsor of the SPDR Trust is PDR Services Corporation, a wholly owned subsidiary of the American Stock Exchange, Inc. The Trustee Bank for SPDRs is State Street Bank and Trust Company of Boston, one of the leading S&P 500 Index fund trustees in the United States. The distributor for SPDRs is PDR Distributors, Inc., a registered broker-dealer and a wholly owned subsidiary of Signature Financial Group, Inc.
To learn more about using SPDRs & WEBS, click on Understanding SPDRs & WEBS. For more information about the Amex, go to Tour the Floor.
amex.com
Jim
|
