SPLG seems much more attractive for a smaller investor / trader, and it pays a dividends relative touch higher than SPY. will it offer very similar returns to SPY / S&P500? considering getting in by selling puts.
thoughts?
thoughts?
SPLG vs SPY
- Thread starter IBRex&me user
- Start date
Results nearly identical but options are much better with SPY.
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Looks like a younger twin, slightly lower manage fee;
may not be as liquid as SPY ,liquidity leader.
The are both created by SPDR, so what differentiates the 2bps vs 9bps expense ratio? Because it's less liquid decreases the expense ratio by 7bps? It doesn't make sense. They both use the same index.
I think Invesco also does this the QQQ (20bps) vs. QQQM (15bps). They both use the Nasdaq 100 TR Index. I guess liquidity does matter to the expense ratio.
I think Invesco also does this the QQQ (20bps) vs. QQQM (15bps). They both use the Nasdaq 100 TR Index. I guess liquidity does matter to the expense ratio.
https://www.ssga.com/us/en/intermed...y-and-splg-two-spdr-etfs-for-s-p-500-exposure
Shorter Time Horizon? Choose SPY’s Lower Transaction Costs
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Longer Time Horizon? Choose SPLG’s Lower Expense Ratio
SPY and QQQ are organized as unit investment trusts. That structure is not particulary efficient. It was a thing back when they were originally created. Changing the structure would require a shareholder vote, and the ownership interests are too diffuse. They would never get the required votes. Not because people would vote against a structural change, but rather because there are too many small shareholders who simply don't vote.
I ran across a very interesting article on Bloomberg last year about how QQQ doesn't actually make any money for Invesco. Until I read this article, I did not know about QQQM. And at first I thought it was kind of silly. But then I realized that QQQM is correlated to NDX at a ratio of 1/100. It's not a perfect correlation. There is a little bit of tracking error. But it's close enough that you can hedge a position in QQQM with $XND options.
And I do that now quite a bit. It's like hedging SPY with $XSP options.
These are index options. You get European expiration and cash settlement. No risk of early assignment.
The Legendary, Wildly Profitable QQQ Fund Makes No Money for Its Owner
An historical artifact prevents Invesco from profiting from its flagship ETF. The company’s Q-themed offshoots are finally solving that problem.
https://tinyurl.com/BB230817QQQ
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