ES vs Spider fees structure
- Thread starter e-miNY
- Start date
You don't explicitly pay management fees for trading SPY. It's already priced in to the ETF.
Retail margin for 1 ES contract is less than 100 shares of SPY and you get better leverage using the futures (a good and bad thing ).
Although is priced in. But in reality u still have to pay for it. So, the question is, does the 0.99% or whatever that percentage is make SPY more expensive to take a position than ES?
Is like the USO situation. On some days, crude can be up a dollar but the ETF could be down a dollar because of the fee structure.
Is like the USO situation. On some days, crude can be up a dollar but the ETF could be down a dollar because of the fee structure.
ES is the S&P futures, SPY attempts to track the S&P cash index and is off slightly due to fees and trading and dividends.
Honeslty they are apples and oranges in many ways. If you are daytrading, use ES. If you want to open long-term positions, perhaps you could look at SPY.
Honeslty they are apples and oranges in many ways. If you are daytrading, use ES. If you want to open long-term positions, perhaps you could look at SPY.
Here u go:
Investors considering purchasing the oil ETF should tread lightly, warns Bianco Research in a Monday note. The research group points out that, according to the fund's prospectus, the average daily change in the ETF's net asset value for any period of 30 straight valuation days comes within 10%, plus or minus, of the average daily change in the benchmark oil futures contract over the same period. "A 10% tracking error? Try that in the equity index ETF world," writes the research group. The divergence is already in play Monday: While oil prices were up more than a buck, the USO ETF shed nearly 1% to $67.76.
With the contango thing, u are losing about 12-15 bucks a year(around 1.20 spread per month) before u make a dime.
U are dead right, that's some fees for the ETF.
That's why i am saying no matter day trading or position trading, ES is the way to go.