An Innovation that Sparked the ETF Revolution | ETF Trends

Twenty-five years ago, State Street Global Advisors came out with the little known SPDR S&P 500 ETF (NYSEArca: SPY). Since then, the ETF industry has evolved with ground-breaking innovative products and ushered in a new era in investment management for investors, financial advisors and institutions around the world.

On the upcoming webcast, An Innovation that Sparked a Revolution, Jim Ross, Executive Vice President of State Street Global Advisors and Chairman of Global SPDR, and Noel Archard, Global Head of SPDR Product for State Street Global Advisors, will celebrate the 25th anniversary of the S&P 500 ETF stalwart, look at how SPY fundamentally changed the way many investors view the markets and outline what is in store for the next 25 years.

SPY, which tracks the benchmark S&P 500 Index, was the first ETF to come to market in the U.S. back in January 22, 1993.

“SPDR S&P 500 ETF offers diversified exposure to U.S. large-cap stocks. A reasonably representative and broadly diversified benchmark leaves this fund well-positioned to continue its long streak of producing superior risk-adjusted returns over the long haul,” Morningstar analyst Adam McCullough said in a note.

Since its inception, SPY has gathered $270.1 billion in net assets under management, becoming the single largest ETF in the world, and has attracted heavy trading interest with daily average volumes of over 100 million shares changing hands. SPY has also generated an average annualized 9.77% return over its 25-year run.

The SPDR S&P 500 ETF was the first of its kind to be listed in the U.S., providing investors with an easy and cheap way to access the benchmark S&P 500 index. Over the years, it has done what is promised to do. For instance, over the past decade, SPY has generated an average annualized return of 9.42%, compared to the S&P 500’s 9.50% – the difference my be attributed to the ETF’s expense ratio of 0.09%.

Financial advisor who are interested in learning more about the ETF industry can register for the Thursday, February 22 webcast here.