Moreover, SPY has acted as a great proxy for exposure to the S&P 500 stocks. A lot of investors are already utilizing SPY as a core component in an equity portfolio.
Given the interest in ETFs among hedge funds, it is safe to say that the passive investment approach and low fees have made ETFs a very attractive investment vehicle across various investment groups.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY and EEM.