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>Does anyone happen to have some good info about Spyders in regards to the
>costs? I'm trying to figure out if passive investors would be better off
>opening up an online account with a dirt cheap broker like Datek and just
>buying SPYs, rather than putting the money in an S&P Index fund, like
>Vangard's. (Snip)
Costs are standard discount broker commish plus spread, which narrows to
1/16 in quiet moments. Last summer I compared the SPY to the SPX, just to
make sure the two tracked exactly. After acounting for the quarterly
dividend on the SPY (currently about 1.1 percent yearly,) they did.
Given that most index funds actually underperform the indexes after fees (I
don't know about Vanguard,) I don't know why most passive investors don't
use SPYders. Lack of marketing, I suppose.
--Chris Slaybaugh
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