This posting features a comprehensive review of the large-cap ETF sector. In this category there aren't many more ETFs than just the 10 we've featured given the tsunami of ETF issuance. Nevertheless, to simplify matters for investors, and to be consistent with previous practices, we're still just highlighting what we feel are the
top 10 choices
. Doing so makes sorting through the sector more manageable for most investors.
The issues chosen represent a broad cross section of domestic issues from a variety of sponsors. Most issues are seasoned being issued long ago with substantial assets under management and good liquidity. We're not necessarily recommending one issue over another; rather we're just trying to feature those issues that aren't repetitive. If other choices are available these are mentioned where applicable.
For those wishing to hedge or speculate ProShares and DirexionShares offer inverse short and leveraged long/short issues.
SPY (SPDR S&P 500 ETF) tracks the S&P 500 Index. It holds the distinction of being the original ETF created by Nate Most for the AMEX in January 1993. (Nate passed away at the age of 90 in 2004 a few months after we had a wonderful lunch with him. The expense ratio is only .09%. AUM (Assets under Management) equal $92 billion and average daily trading volume is over 280M shares. As of mid-September 2011 the dividend is $1.92 making the current yield 2% and YTD return -4.33%. Competitive choices would be IVV (iShares S&P 500 ETF) and could also include (VIG (Vanguard Large Cap Blend ETF) among others.
Data as of September 2011
SPY Top Ten Holdings & Weightings
- Exxon Mobil Corporation (XOM): 3.27%
- Apple, Inc. (AAPL): 3.19%
- International Business Machines Corp (IBM): 1.87%
- Chevron Corp (CVX): 1.78%
- Microsoft Corporation (MSFT): 1.77%
- Johnson & Johnson (JNJ): 1.62%
- The Procter & Gamble Co (PG): 1.59%
- General Electric Co (GE): 1.55%
- AT&T Inc (T): 1.51%
- The Coca-Cola Co (KO): 1.45%