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Hi James:
You're absolutely correct in assessing and identifying SPDRs as a great
investment vehicle. Your cost comparison with Vanguard S&P 500 Fund is
also valid. However, it's imperative to note that you can't "trade"
Vanguard Fund as you could SPY. The most attractive feature about SPY
stocks is that, you could implement great trading strategies with Call and
Put options (SPX options.) This feature makes SPY trading a great game in
town, beside trading S&P futures.
Best, Ned
Gandevani@xxxxxxxxxxxxxxxx
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> From: James F. Mazzulla <tagteam@xxxxxxx>
> To: omega-list@xxxxxxxxxx
> Subject: Re: Question for SPY traders
> Date: Thursday, April 23, 1998 9:38 AM
>
> No doubt SPDRs are a very useful investment vehicle but they
> are still, after all, a "fund" with the related expenses
> thereof.
>
> The following was taken directly from the AMEX web site:
>
> "...Expenses for the SPDR Trust are anticipated to be among
> the lowest for investments of this type, currently at 18.45
> basis points (0.185%)......"
>
> Accordingly, Vanguard's .2 expense ratio is right in line.
>
> Best regards,
> Jim
>
> On Thu, 23 Apr 1998, Chris Slaybaugh wrote:
> >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.
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