Launched in January 1993, SPDR S&P 500 ETF Trust (SPY) is the oldest and one of the largest exchange-traded funds in the world, with assets under management exceeding $400 billion. It tracks the 500 largest U.S. companies by market capitalization and carries an expense ratio of 0.09%. Investors benefit from intraday liquidity, with average daily trading volume around 60 million shares, and a current dividend yield near 1.3%. As a market-cap-weighted vehicle, SPY’s top sector exposures mirror the S&P 500 index, with technology accounting for roughly 35% of its portfolio.

In April 2025, concerns over newly announced U.S. tariffs triggered a rapid market sell-off that erased approximately $5 trillion in market value over two trading days. During this period, some investors, including prominent traders, suspended contributions to SPY allocations, fearing recessionary impacts on large-cap U.S. equities. When a 90-day tariff pause was announced, the market rebounded sharply—SPY recovered all lost ground within five trading sessions. Those who halted purchases missed out on gains exceeding 4% in that rebound window, underscoring the importance of maintaining consistent dollar-cost-averaging in core index exposures regardless of short-term volatility.