SPY allocates over 24% of its weight to the technology sector while financial services and healthcare stocks combine for almost 29% of the fund’s weight. Consumer discretionary and industrial names combine for 22.7%.
“An added benefit of SPY’s size and liquidity is that it allows investors to easily execute large trades with very low market-impact costs, which makes it the preferred S&P 500 ETF for institutions,” adds SSgA.
Nearly three-quarters of SPY’s ownership is attributable to institutional investors.
For more information on ETFs, visit our ETF 101 category.