Accessing the S&P 500 via exchange traded funds is not difficult. Three ETFs –- the SPDR S&P 500 ETF (NYSE: SPY), the Vanguard S&P 500 ETF (NYSE: VOO) and the iShares Core S&P 500 ETF (NYSE: IVV) –- offer exposure to the traditional version of the benchmark U.S. index.
Although the aforementioned ETFs all track the same index, there are differences among the trio that long-term investors need to consider. For example, SPY, the world's largest ETF, is structured as a unit investment trust. That means investors that are considering holding SPY for extended periods cannot reinvest the dividends paid by the fund.
“This creates a cash drag when prices are rising. SPY is also not allowed to engage in securities lending--a technique many funds use to generate extra income that can be used to defray the cost of replicating an index,” according to ...
/www.benzinga.com/trading-ideas/long-ideas/15/09/5831185/s-p-500-broad-market-etfs-on-the-cheap alt=S&P 500, Broad Market ETFs On The Cheap>Full story available on Benzinga.com
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