SPDRs

SPDRs refers to a family of exchange-traded funds (ETFs) managed by State Street Global Advisors (SSGA). The SPDR acronym stands for Standard & Poor's Depositary Receipts. These funds offer investors access to broad or targeted market exposures by tracking the performance of various indices. Like other ETFs, SPDRs trade on major stock exchanges throughout the trading day and provide price transparency and intraday liquidity, with prices fluctuating as market values change.

The first SPDR was SPDR S&P 500 ETF Trust (SPY), introduced in 1993 to track the S&P 500. Since then, the SPDR line has grown to include funds that cover large-, mid-, and small-cap equities, sector and international exposure, and even commodities. SPDR funds are typically passively managed, using full replication or sampling of the underlying index, and they charge ongoing management fees (expense ratios) that are usually low relative to traditional mutual funds.

Notable SPDRs include SPY (S&P 500), MDY (S&P MidCap 400), SPYG (S&P 500 Growth), SPYV (S&P 500 Value), SPDR Dow Jones Industrial Average ETF Trust (DIA), and SPDR Gold Shares (GLD) which tracks physical gold. The SPDR family also includes sector-focused and regional funds such as SPDR S&P Bank ETF (KBE) and SPDR S&P Regional Banking ETF (KRE).

Investors use SPDRs for core exposure, tactical tilts, or hedging. They carry typical ETF risks, including tracking error, market risk, and liquidity considerations, along with tax considerations and the need for broker execution.