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Ariel, this information about Spiders is from Scientific Investment
Editor Stephen M. Berer. I subscribe to the Chartist and this
information was in the Aug 1997 issue:
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"Another variation on closed end funds are S&P Depository Receipts.
Abbreviated SPDR's, & called Spiders, these securities also trade
exactly like a stock. Their symbol is SPY, & they trade on the American
Exchange.
Spiders provide a way of "buying" the S&P 500 index. They are
engineered to almost mimic the movement of the S&P500, & their shares
are priced at 1/10 the index's value, that means they are currently
selling at around $90.00/share (my note: as of today, $109.25).
Spiders are extremely liquid. That means you can buy very large
quantities of them without affecting the market. This is not true of
most stocks & closed end funds. Spiders have a number of advantages
too. The annual management fee is an extremely low .18%. By contrast,
most mutual funds charge 1% to 1.25%.
Also, Spiders can be bought all day long, unlike open end funds which
can only be bought at the day's closing NAV. For active traders or
fine-tuned timing systems, this can more than compensate for commission
costs.
Finally Spiders can be sold short. They can even be sold short on
down-ticks, unlike stocks. That means that if the market is falling
sharply you can open a timely short position in Spiders, while you may
be forced to accept a delayed trade and more unfavorable prices to go
short in stocks."
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Regards,
DS
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ariel@xxxxxxxx wrote: RT's
> I have BMI and was wondering if "SPY" is the symbol for the S&P 500
> index cash price. Calling BMI is useless sometimes. On hold for 10 min. today-thats my limit. Thanxs for reply Harry
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