SPY and S and P index price differences

Discussion in 'Trading' started by bob2007, Oct 19, 2020.

  1. BMK

    BMK

    Why is there a relatively large difference between the price of SPY and the price of IVV?

    BMK
     
    #11     Oct 21, 2020
  2. Sig

    Sig

    Are you talking about absolute price or daily percent change? The daily percentage change should be close to identical. Price over time drifts apart because IVV can lend shares and reinvests dividends before payout where as SPY does not. So they're not tracking exactly the same thing, i.e. right before dividend payout IVV actually holds more of the index than SPY. There is also a difference in fee structure between the two, although I think that's a second order effect compared to the other two differences.
     
    #12     Oct 21, 2020
    daxydet and jharmon like this.
  3. daxydet

    daxydet

    They are both different. S&P is an index and SPY is an ETF. They both work differently.
     
    #13     Apr 22, 2021