Investment strategies usually include portfolios that include asset classes that provide high yield and high dividends to its investors.
As there are different managed funds available, how do you choose which one suits you best?
Let’s discuss SPY vs. SPYX and which of the two ETFs is better.
Both SPY and SPYX are Exchange-Traded Funds (ETFs). The goal of the SPDR S&P 500 Trust ETF (SPY) is to get net returns that match the S&P 500 Index.
The S&P 500 is one of the key benchmarks of the equity market in the United States.
It’s used to measure the financial health and the stability of the economy. It is made of the 500 large and mid-capitalization stocks in the United States.
On the other hand, the goal of SPYX, also referred to as the SPDR S&P 500 Fossil Fuel Reserves Free ETF, is to remove the carbon footprint from the S&P 500.
It’s a greener version of SPY, the first and biggest ETF issued.
The goal of the ETF is to provide returns before expenses and fees that have the returns of the S&P 500 Fossil Fuel Index.
SPY or SPDR S&P 500 ETF Trust is the first index that copies the index while targeting a price of 10% of the S&P 500.
Since its inception, it has been one of the most actively traded ETFs, even with the introduction of other S&P 500 ETFs.
Launched in 1993, SPY was the first fund to be listed in the exchange and had assets worth $6.53 million.
Despite the difficult start, it finally rose to an AUM of $1 billion in 3 years.
There are multiple platforms on which you can trade in SPY as listed in the NYSE ARCA Exchange.
SPYX or SPDR S&P 500 Fossil Fuel Reserves Free ETF is a category of the S&P 500 index. Its goal is to diversify into energy-related firms.
The fund launched in 2015 has a fossil-free stance that makes it tilted towards certain sectors. This means that they remove firms with fossil fuel reserves or crude oil, coal, or natural gas.
At the same time, it provides good coverage of the US large-capitalization, small and mid-capitalization exposure. The index gets rebalanced after every quarter.
Clean energy investing used to be limited to a small subsector of alternative stocks. It was more like a thematic investment that investors included in their core allocations.