This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

The S&P 500 ETFs You Don't Know

Stocks in this article: SPYIVVCSMRWLPBPRSPEPS

By Michael Johnston, founder of ETF Database.

The S&P 500 is one of the most widely followed benchmarks in the world, a bellwether of the U.S. economy that is included in the Index of Leading Indicators. Composed of 500 of the largest stocks listed in the U.S. (as well as a handful of non-U.S. companies), the index has a weighted average market capitalization of approximately $80 billion and includes companies across all sectors of the economy.

With the rise of indexing as an investment strategy, it's not surprising that exchange-traded funds designed to track the S&P 500 are among the largest and most heavily traded ETFs. With a market capitalization of more than $57 billion, the SPDR S&P 500 (SPY) is by far the largest ETF, nearly $20 billion larger than its closest competitor. The iShares S&P 500 Index Fund (IVV) comes in at No. 4 on the list with almost $21 billion in assets, meaning that U.S. investors have nearly $80 billion invested in S&P 500 ETFs.

Although the SPY and IVV are by far the most popular ways to play the S&P 500, they're not the only games in town. There are a number of exchange-traded products that offer similar risk and return profiles but also feature twists that in some cases allow them to outperform the popular benchmark by a wide margin.

ProShares Credit Suisse 130/30 (CSM)

This ETF employs a 130/30 strategy that has been popular with investors for some time but is new to ETFs. The CSM tracks the Credit Suisse 130/30 Large-Cap Index, a benchmark that establishes either long or short positions in S&P 500 equities by applying a rules-based ranking and weighting methodology. This fund essentially establishes a 100% long position in the S&P 500, then sells 30% of the value of the portfolio in holdings that are expected to underperform. It then uses the proceeds of those sales to establish long positions in holdings that are expected to outperform.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs