Index ETFs are simply exchange-traded funds that seek to passively track the performance of a benchmark index. The SPDR S&P 500 ETF Trust (SPY) is a widely utilized exchange-traded fund (ETF) that tracks the S&P 500.

In the United States, the most widely followed stock market indices are the Dow Jones Industrial Average, the S&P 500, the Nasdaq 100, and the Russell 3000. While indices themselves cannot be bought or sold, financial products that track their value are accessible to investors and traders. For example, the SPDR S&P 500 ETF Trust (SPY) is a widely utilized exchange-traded fund (ETF) that tracks the S&P 500. Equity index futures are another avenue for traders and investors to access exposure to stock market indices. In the United States, equity index futures are available on the S&am

Risk is fundamental to the investment and trading process, which means there’s associated risk when taking a position in SPY—whether it be long, short, or an options-focused position. Going back to the 1920s, the average annualized return in the S&P 500 is 9.82%. Since it was expanded to include 500 stocks in 1957, the average annualized return in the S&P 500 is closer to 10.15%. That means the average annualized return in SPY is roughly 10% The average annualized return doesn’t guarantee that investors in SPY will make a profit, it only reports the average return in this product since