More exposure to news and world events (movie theatres when COVID hit).Even the biggest companies can drop a lot or go bankrupt (Nortel, General Electric, Enron).Easier to research one company than to research a whole bunch of them.Could have higher dividend payout (a lot of banks have a dividend of 3%-5% whereas SPY is 1.5%).Chance for massive growth very quickly (Gamestop is up 4,683% in the past year vs.Lower dividend payout than some companies.Not a high chance for massive growth quickly (the downside of diversification).Almost always goes up over long periods of time.Extremely diversified (you have the ability to own a whole bunch of companies at once).And there are positives and negatives to ETF investing. As you may have noticed, SPY's biggest sector is technology, but here is the exact percentage of its top 5 sectors:Īt the end of the day, SPY is an ETF (basically a basket of stocks instead of an individual stock). What this means is that if you buy $100 worth of SPY, you'll own about $6 worth of Apple stock, $5.4 of Microsoft stock, and so on. When you buy one share of SPY, you immediately own a little bit of each of those companies. And THAT is basically a basket full of 500 large companies in the United States. The SPY stock is just the ticker for something called the “SPDR S&P 500 ETF Trust”. But is the SPY ETF better than individual stocks? What's in it? And should you be buying it in today's day and age? What is the SPY Stock If your own stock picks outperform SPY, you've “beaten the market”. As one of the most popular investments out there, the SPY stock is often the benchmark people refer to when they say “the market”. If you invest, chances are you've heard of SPY. Share on Twitter Share on Facebook Share on LinkedIn Share on Pinterest
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