S & P 500 Etf Trust Essay

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Question 1: Please research 5 tickers out of the list provided in the next few tabs, and discuss them briefly (3 sentences each max.)
SPY: The SPDR S&P 500 ETF Trust is an exchange-traded fund that tracks the S&P 500 Index. This ETF is a market-cap-weighted index of US large and midcap stocks selected by the S&P 500 committee. It is one of the most liquid Unit Investment Trusts with average daily dollar volume of $15.96 Billion.
XLV: The Health Care Selector Sector SPDR Fund is a market-cap weighted, exchange-traded fund that tracks the performance of the Health Care Select Sector Index. It is structured as an open-ended fund and has $13.48 Billion in AUM. The Index includes health care equipment and supplies, health care providers and …show more content…

energy stocks. The fund invests in companies in the following industries: oil, gas, consumer fuels, energy equipment and services.
AGG: iShares Core U.S. Aggregate Bond ETF is a market-weighted exchange-traded fund that tracks the Barclays US Aggregate Bond Index. This index consists of treasuries, agencies, CMBS, ABS and investment grade corporate bonds.
FXE: Euro Currency Trust is a grantor trust formed under the laws of New York State. The trust aims to track the price of the Euro relative to the U.S. dollar. It allows investors to access the euro with holdings of the euro in a deposit account. Also, it is a very liquid fund, traded heavily across tiny …show more content…

Without very well-informed or specific industry knowledge, the spider is a great option. It largely follows the overall performance of the US market, as it includes five hundred of the largest companies. According to Bloomberg, the S&P 500's forecasted performance will continue to grow at a steady and conservative pace throughout 2017. The SPY ETF is a way to ensure gains and to have the opportunity to invest in a riskier asset as we create our portfolio.
XLE, the Energy Select Sector SPDR has been ranked as the second best ETF within the equity energy category according to US News and for good reason. The industry outlook for energy is mixed as oil prices have rebounded and new alternative energies are coming to market. Interestingly, oil demand continues to increase, while growth is likely to slow as new efficient technologies shape the industry. Energy prices are expected to increase in the coming years as oil inventories decrease from record-high levels as production outputs are reduced. Growth in the energy sector will primarily be driven from billions of people in emerging economies moving towards higher income paying jobs. China and India will play a major role in the energy sector as these two emerging economies develop and require more energy. As seen in Figure 2 of the appendix, oil and coal have historically accounted for a large percentage of the energy market.