YTD S&P 500 vs SPY ETF

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Xrayman69
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YTD S&P 500 vs SPY ETF

Post by Xrayman69 » Fri May 10, 2019 11:19 pm

I’m curious why the year to date (YTD) return for the SPY ETF is 18%+ while the YTD for the S&P 500 is 14%+.

The yield for the SPY is about 1.7% annually so this even above the S&P does not make up the difference. Furthermore, it was my thinking that when the dividend is distributed quarterly the value of the ETF is decreased the same percentage on the distribution date as the funds need to be made up by selling of the shares leading to correlating decrease.

If the value of the ETF does not decrease with dividend distribution than this would result in the ETF beating the S&P every year by the yield margin minus the expenses.

livesoft
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Re: YTD S&P 500 vs SPY ETF

Post by livesoft » Sat May 11, 2019 1:38 am

Generally, when someone asks this question they have found performances that are over different date ranges. For instance, YTD could mean year-to-[different]dates, where the end date is one of:

Today if the performance was looked up in the late evening.
Yesterday if the performance was looked up before the market closes.
End-of-previous month.
End-of-previous quarter.

When one finds a YTD performance number on a web site, then the date range is not always given, so one cannot assume what YTD means.

Here is a screen capture from morningstar.com where things are very clear and the performance numbers are the same:

Image
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LittleD
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Re: YTD S&P 500 vs SPY ETF

Post by LittleD » Sat May 11, 2019 6:26 am

The difference he is probably referring to is between SPX and SPY. SPX is the S&P 500 without dividends included. The SPY is the same fund as the S&P 500 TR index. They have dividends included in the price graphs and interval calculations. I use SPY for most of my decision analysis but, many traders use the SPX for shorter term technical analysis.

SovereignInvestor
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Re: YTD S&P 500 vs SPY ETF

Post by SovereignInvestor » Sat May 11, 2019 6:27 am

LittleD wrote:
Sat May 11, 2019 6:26 am
The difference he is probably referring to is between SPX and SPY. SPX is the S&P 500 without dividends included. The SPY is the same fund as the S&P 500 TR index. They have dividends included in the price graphs and interval calculations. I use SPY for most of my decision analysis but, many traders use the SPX for shorter term technical analysis.
Usually missing dividends is culprit but the difference cited was 4% points and dividends for 5 months in 2019 would barely be 1%.

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jeffyscott
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Re: YTD S&P 500 vs SPY ETF

Post by jeffyscott » Sat May 11, 2019 7:32 am

As of 5/10/19 SPY YTD is 15.78% (price) or 15.71% (NAV), S&P 500 is 15.77%, according to Morningstar.

http://performance.morningstar.com/fund ... ture=en_US
Time is your friend; impulse is your enemy. - John C. Bogle

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Xrayman69
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Re: YTD S&P 500 vs SPY ETF

Post by Xrayman69 » Sat May 11, 2019 7:36 am

jeffyscott wrote:
Sat May 11, 2019 7:32 am
As of 5/10/19 SPY YTD is 15.78% (price) or 15.71% (NAV), S&P 500 is 15.77%, according to Morningstar.

http://performance.morningstar.com/fund ... ture=en_US
Does this include dividends for the SPY? Or straight up price onlynexcluding the YTD dividend payments?

Thank you.

LittleD
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Re: YTD S&P 500 vs SPY ETF

Post by LittleD » Sat May 11, 2019 7:56 am

Yes, the SPY includes dividends... The SPX does not.

LittleD
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Re: YTD S&P 500 vs SPY ETF

Post by LittleD » Sat May 11, 2019 8:03 am

This is from a writeup on the two indexes SPX and NDX:

SPX and NDX never have dividends because they are indexes simply calculated mathematically and displayed - they are not equity products. SPY and QQQ are the related ETF products that track those indexes, owning the underlying shares in the same proportions as the indexes, buying, selling, and rebalancing regularly to stay in line.

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jeffyscott
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Re: YTD S&P 500 vs SPY ETF

Post by jeffyscott » Sat May 11, 2019 8:08 am

Xrayman69 wrote:
Sat May 11, 2019 7:36 am
jeffyscott wrote:
Sat May 11, 2019 7:32 am
As of 5/10/19 SPY YTD is 15.78% (price) or 15.71% (NAV), S&P 500 is 15.77%, according to Morningstar.

http://performance.morningstar.com/fund ... ture=en_US
Does this include dividends for the SPY? Or straight up price onlynexcluding the YTD dividend payments?

Thank you.
It says Trailing Total Returns, so dividends are included.
Time is your friend; impulse is your enemy. - John C. Bogle

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