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GLD ETF: The Easiest Way to Invest in Gold Without Holding Physical Bullion

  1. GLD: The Easiest Way to Invest in Gold When the stock market becomes volatile and currency exchange rates fluctuate, many investors start looking for safer assets. One of the most traditional safe-haven assets is gold. Historically, gold has held its value during economic crises and financial instability, making it a popular choice for defensive investing. However, buying physical gold can be inconvenient due to storage costs, security risks, and low liquidity. Expense Ratio (%) Inception Date Asset Manager 0.40 2004/11/18 SSGA That's where GLD (SPDR Gold Shares) comes in. GLD is a U.S.-listed ETF designed to closely track the price of gold, allowing investors to gain exposure to gold without holding physical bullion. With GLD, you can invest in gold just like buying a regular stock in the market, making gold investment simple and accessible. *This post contains affiliate links. As an Amazon Associate ...
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SPY vs SPYM Explained Simply: Which S&P 500 ETF Should You Choose?

*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.

SPY VS SPYM IMAGE


1. SPY vs. SPYM — Both Track the S&P 500, So What’s the Difference?

When exploring U.S. ETFs, you’ll often come across the names SPY and SPYM. At first glance, they seem almost identical because both follow the S&P 500 index. Their charts look similar, their holdings overlap, and it’s easy to assume they’re basically the same product.

But in reality, these two ETFs differ in fees, structure, and how they are used in the market. Depending on your investing style, the better choice may be completely different.

SPY VS SPYM IMAGE 1

Visit STATE STREET ETF Official Website for SPYM's Holdings


2. SPY and SPYM Both Track the S&P 500

First, let’s look at what they share. Both SPY and SPYM invest in a diversified basket of 500 large-cap U.S. companies that represent the American market. Their portfolios include tech giants like Apple, Microsoft, and NVIDIA, as well as financials, healthcare, and consumer companies. 

SPY VS SPYM IMAGE 2

They are also both managed by State Street (SPDR), so their overall direction and index methodology are nearly identical. Because of this, investors who want broad exposure to the U.S. stock market will find that both ETFs offer similar stability and diversification.

*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.


3. The Biggest Difference: Expense Ratio (Cost)

Although they track the same index, the fees are very different.
  • SPY’s expense ratio: around 0.09%
  • SPYM’s expense ratio: around 0.02%, significantly lower
This may seem like a tiny difference at first, but it becomes meaningful in long-term investing. For example, if you invest 10 million KRW (or $10,000), SPY takes roughly nine times more in annual fees than SPYM.

SPY VS SPYM IMAGE 3

Fees don’t get withdrawn directly—they’re deducted internally from the fund—so they gradually influence your long-term returns. This is why many long-term passive investors find SPYM’s low-cost structure very attractive.

SPY VS SPYM IMAGE 4

4. SPY Dominates in Liquidity and Market Usage

Even though SPYM is cheaper, it doesn’t automatically make it the better ETF in all situations. SPY is the oldest ETF in the U.S. (launched in 1993) and remains one of the most heavily traded ETFs in the world. Because of its enormous trading volume, buy and sell orders fill quickly and with very tight spreads.

SPY VS SPYM IMAGE 5

Additionally, SPY is widely used in the options market, essentially serving as a standard contract for institutional traders and hedge strategies. This makes SPY extremely popular among professionals who need liquidity, hedging tools, or short-term tradability.

Visit STATE STREET ETF Official Website for SPYM


SPYM, on the other hand, doesn’t have the same level of liquidity. Its main appeal is the low-cost, long-term index exposure rather than active trading. In short:
  • SPY = the “trading-friendly” S&P 500 ETF
  • SPYM = the “low-cost, long-term holding” S&P 500 ETF
SPY VS SPYM IMAGE 6

*This post contains affiliate links. As an Amazon Associate I earn from qualifying purchases.


5. Which ETF Should You Choose?

There is no universal answer to which one is better. The right choice depends entirely on your investing style.
  • If you trade frequently, want tight spreads, or use options, → SPY is more suitable.
  • If you are building a long-term portfolio, especially for 10+ years, → SPYM may deliver better cost efficiency due to its lower expense ratio.
For regular monthly investing or retirement-style accounts, SPYM is often the more reasonable choice. Since both track the same index, the real question becomes whether you prioritize trading convenience or cost efficiency.


*The information in this article is provided for informational purposes only. All investment decisions and results are solely the responsibility of the investor.
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