SPY price drop today

SPY used to be about 4 point higher than S&P 500. But from this morning it dropped and now it's almost same as S&P 500. Does anybody know what happened?

 

Rumor has it that there has been a cash distribution. Thats the word on the street.

 

SPY trading ex dividend as of this morning

 

SPY gives a dividend every three months on the date of the quarterly futures expiration.

 

Then does anybody know how SPY is calculated? Why it's a little higher than SPX?

 

Hopefully if you trade an equity that pays div you have a clue as to what ex-divs are.

 

I know why price drops after div. My question is how to calculate SPY in general(I know how to calcuate SPX - s&p 500).

 

SPY is lower than SPX, not higher.

As of 12/17/10 close SPX is 1243.91, SPY is 124.30.

SPY is a market traded security. What is there to calculate other than the accrued dividend, the expense ratio and margin rates?

 

No. Most of time, SPY is higher than SPX. Look at the prices before 12/17/10(before dividend)