SPY HOLDINGS: Meaning, Top Holdings, ETF & by Weight

Spy holdings refer to a list of stocks invested in spy ETF. It consists of different companies’ stocks which are usually purchased. Without having to purchase individual equities, many investors use SPY to diversify their portfolios and receive exposure to the American stock market. Compared to index funds with higher charges, ETFs like SPY have inherent low expenses that allow investors to track the S&P 500 index more closely. In this article, we provide the list of major SPY holdings.

SPY Holdings

The SPY is an exchange-traded fund that monitors the performance of the S&P 500® Index, which has the ticker SPY. By investing in the same stocks that are included in the index with the same weightings, SPY, managed by State Street Global Advisors, seeks to closely mimic the performance of the S&P 500® Index. Due to its high liquidity and trading on the NYSE Arca, SPY is a well-liked option for investors seeking broad exposure to the US stock market.

An ETF is a SPY. This is the general term for a type of security that monitors or aggregates many stocks within an index, industry, or other grouping.

Why Is SPY Stock the Best Choice?

SPY stock is the oldest and largest ETF. It is partly because it was the first to track the S&P 500. All of the stocks in the S&P 500 are yours if you purchase SPY stock. This is a strong proposition. According to State Street, the sponsor of the ETF, investors hold more than $340 billion worth of SPY stock. Additionally, a daily share volume of almost $18 billion attests to the tremendous demand for the shares.

SPY Holdings by Weight

This is a list of SPY holdings by weight.

Name Weight

Apple Inc 7.16%
Microsoft Corp 6.46%
Amazon.com Inc 2.75%
NVIDIA Corp 1.95%
Alphabet Inc 1.81%
Berkshire Hathaway Inc 1.70%
Alphabet Inc 1.59%
Exxon Mobil Corp 1.40%
Meta Platforms Inc 1.37%
UnitedHealth Group Inc 1.33%
Johnson & Johnson 1.25%
Tesla Inc 1.21%
JPMorgan Chase & Co 1.17%
Visa Inc 1.09%
Procter & Gamble Co 1.07%
Mastercard Inc 0.91%
Eli Lilly and Co 0.87%
Chevron Corp 0.87%
The Home Depot Inc 0.86%
Merck & Co Inc 0.84%
AbbVie Inc 0.84%
PepsiCo Inc 0.76%
Broadcom Inc 0.76%
Coca-Cola Co 0.73%
Costco Wholesale Corp 0.64%

Top SPY Holdings

All of the stocks in the S&P 500 are owned by SPY stock, therefore all of its holdings are public knowledge. Additionally, SPY gives more weight to stocks with higher market values, allowing you to always know what stocks are among their top holdings.

It’s crucial to remember that SPY weights stocks according to their market value. This indicates that the biggest companies control it. About a third of the value of SPY stock is comprised of just the 15 most valuable stocks. And currently, two companies control more than 5% of the SPY stock.

This list contain top SPY holdings.

Apple Inc. 7.25%
Microsoft Corporation 6.56%
Amazon.com Inc. 1.94%
NVIDIA Corporation 1.85%
Alphabet Inc Class A 1.85%
Berkshire Hathaway Inc Class B 1.70%
Alphabet Inc Class C 1.63%
Meta Platforms Inc. Class A 1.54%
Exxon Mobil Corporation 1.39%
UnitedHealth Group Incorporated 1.33%

Top SPY Holdings by Sector

This is a list of SPY holdings according to a sector with their weight:

Sector Weight

Information Technology – 25.75%
Health Care – 14.41%
Financials – 13.06%
Consumer Discretionary – 9.97%
Industrials – 8.43%
Communication Services – 8.30%
Consumer Staples – 7.40%
Energy – 4.65%
Utilities – 2.90%
Materials – 2.60%
Real Estate – 2.53%

SPY EFT

SPDR S&P 500 ETF Trust is one of the most popular funds. It follows the 500 large-cap U.S. stocks that make up the Standard & Poor’s (S&P) 500 Index. A committee chooses these stocks based on market size, liquidity, and sector.

The S&P 500 also measures the financial health and stability of the economy and acts as one of the primary benchmarks for the U.S. equities market. The fund also referred to as the SPY ETF, was started in 1993.

The SPY is a well-diversified asset pool that distributes its holdings among many industries. The five sectors SPY majorly invests in includes:

Information technology: 25.73%
Healthcare: 14.67%
Financials: 12.84%
Consumer discretionary: 9.88%
Industrials: 8.41%

Nearly all of the funds in the SPDR S&P 500 ETF Trust are invested in common stocks, which are part of the S&P 500 Index. These companies make up its top 10 holdings at the moment:

Understanding SPY ETF

The SPY ETF was formed on January 22, 1993. In actuality, it is regarded as the first fund to follow the S&P 500. It is an exchange-traded fund (ETF) that directly follows the S&P 500 Index.
Even with the emergence of rival S&P 500 ETFs, it is frequently recognized as the first ETF to be listed and continues to be one of the most actively traded.

When the ETF was first released in 1993, its assets under management (AUM) were barely $6.53 million. It had a rocky beginning and considerable difficulties at first obtaining investors, but three years later it soared to more than $1 billion in AUM.

The ETF trust had extraordinary assets worth $369.47 billion as of April 5, 2023.

Investors can trade SPY on a variety of exchanges, including the NYSE Arca exchange, where it is listed. State Street Bank and Trust serve as the SPDR S&P 500 ETF Trust’s trustee, and ALPS Distributors serves as the fund’s distributor. Investors can purchase and sell SPY shares through their broker at any time of the day, including short sales, as ETF shares move similarly to equities.

A share of SPY should cost one-tenth as much as the S&P 500 Index. Thus, one SPY share should trade for close to $400 if the S&P is at a level of 4,000.

SPY Holdings Morningstar

SPY holdings has a four-star Morningstar rating. SPY’s returns have closely followed those of the S&P 500, an index that has, over the previous ten years, outperformed the typical return of other large-blend funds.

As of April 5, 2023, the SPDR S&P 500 ETF Trust (SPY) had produced an average return over the previous three years of 19.82%. According to data from the previous 10 years, the fund had average annual returns of 12.20%. The SPDR S&P 500 ETF Trust has generated average annual returns of 9.61% since its inception.

With a beta of almost 1, this naturally matches the performance of the S&P 500.
It’s crucial to remember that the SPY ETF has an extremely low relative tracking error—just 0.05 as of April 6, 2023—because it completely mimics the index.

What Are the Major Stocks in Spy?

The major stocks in SPY:

Tesla Inc.
Apple Inc.
NIKE INC.
Amazon.com, Inc.
Walmart Inc.

How Do Investors Use SPY?

Investors can use SPY in different ways depending on their investing choice:

#1. Liquidity

Due to the unique ETF creation/redemption process, which enables investors to trade whenever the market is open, SPY trades on an exchange daily and has many levels of liquidity. Liquidity is essential in today’s market and can make it possible for investors to enter and exit markets quickly, simply, and affordably.

#2. Diversification

Given that the ETF offers extensive exposure to the US stock market and can act as the basis for a diversified investment portfolio, some investors use it as a core asset in their portfolio.

#3. Securities Lending

Through SPY, investors can engage in the practice of lending other investors their ETF shares. This tactic is a crucial component of activity on the capital markets since it makes settlement easier, adds liquidity, and encourages risk-taking confidence.

How Much of Spy Is Apple?

SPY has 7.25% of Apple Inc. However, this is a fluctuating value which could change anytime.

What Does Spy Invest In?

Due to the SPY ETF’s focus on large-cap U.S. funds, investors are not exposed to other asset classes, such as small-cap stocks, international equities, or bonds.

Who Runs Spy?

It is usually the investors or the fund’s shareholders in SPY that run it. You can also have ownership of the fund and the right to a portion of its assets and profits by purchasing SPY shares.

Given that SPY is designed like a conventional open-end fund, or unit investment trust (UIT), it must register with the US Securities and Exchange Commission (SEC) and adhere to a number of strict rules.

The fund must abide by rules pertaining to diversification, valuation, and risk management, as well as regularly report its holdings and other financial information to the public. You can trust the fund and its management team to operate with a high degree of openness and accountability if you invest in SPY.

What Are the 3 Main Stocks?

The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite are the three main stocks that Americans monitor the most closely.

How Many Sectors Are in Spy?

In summary, there are currently 11 sectors in SPY stock. The SPY stock distributes investing funds among all 11 sectors. You can buy tech companies, consumer stocks, utilities, and everything else in just one trade. Once more, SPY stock gives sectors with the highest-value stocks more weight.

The S&P sectors constitute a method of sorting publicly traded companies into 11 sectors and 24 industry groups.

As most of the top positions are taken by mega technology stocks, it is not surprising that technology dominates the SPY stock. Healthcare only makes up 15% of the SPY index, whereas tech stocks make up more than 25%.

Some people might be concerned that winning sectors are piling up SPY stock. But keep in mind that if one sector starts to outperform another, the sector weightings will change.

In Conclusion

Investors can efficiently diversify their exposure to the US equity market without having to buy many stocks by using the SPDR S&P 500 ETF Trust. As a result, anyone looking to diversify their portfolio with U.S. equities while only assuming a minimal amount of risk might consider the SPY.

The SPDR S&P 500 ETF Trust does, however, have a number of risks due to the fact that it tracks 500 large-cap equities in the United States, including market risk, country risk, currency risk, economic risk, and interest rate risk. The performance of the fund may be impacted by both global and domestic economic statistics, so investors should be mindful of both.

FAQs

When was SPY created?

SPY was created on January 22nd, 1993. It remains the most actively traded ETF in the world and was also the first US ETF to be listed on a national stock exchange. The development of SPY and other ETFs transformed the financial business by giving investors a new option to gain access to a variety of asset classes and investment techniques.

What is the S&P 500 Index?

The S&P 500 Index is a market capitalization-weighted index. It contains 500 large-cap companies listed on the NASDAQ or the New York Stock Exchange (NYSE Arca).

It is widely regarded as the benchmark for the US stock market. This is because it represents the performance of the biggest and most widely-held public companies in the nation.

Does SPY Pay Dividends?

SPY does pay dividends. SPY stock collects all of the dividends paid out by the S&P 500’s dividend-paying stocks and then distributes them to you.

Additionally, the SPY currently has a dividend yield of about 1.6%. In other words, if you buy $25,000 in SPY stock, you will get a return of $400 year, paid in quarterly instalments.