YTD S&P 500 vs SPY ETF

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
Xrayman69
Posts: 994
Joined: Fri Jun 01, 2018 8:52 pm

YTD S&P 500 vs SPY ETF

Post by Xrayman69 »

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
Posts: 85971
Joined: Thu Mar 01, 2007 7:00 pm

Re: YTD S&P 500 vs SPY ETF

Post by livesoft »

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
Wiki This signature message sponsored by sscritic: Learn to fish.
LittleD
Posts: 227
Joined: Sun Jul 31, 2011 7:23 am

Re: YTD S&P 500 vs SPY ETF

Post by LittleD »

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
Posts: 630
Joined: Mon Aug 20, 2018 4:41 pm

Re: YTD S&P 500 vs SPY ETF

Post by SovereignInvestor »

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%.
User avatar
jeffyscott
Posts: 13438
Joined: Tue Feb 27, 2007 8:12 am

Re: YTD S&P 500 vs SPY ETF

Post by jeffyscott »

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
Topic Author
Xrayman69
Posts: 994
Joined: Fri Jun 01, 2018 8:52 pm

Re: YTD S&P 500 vs SPY ETF

Post by Xrayman69 »

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
Posts: 227
Joined: Sun Jul 31, 2011 7:23 am

Re: YTD S&P 500 vs SPY ETF

Post by LittleD »

Yes, the SPY includes dividends... The SPX does not.
LittleD
Posts: 227
Joined: Sun Jul 31, 2011 7:23 am

Re: YTD S&P 500 vs SPY ETF

Post by LittleD »

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.
User avatar
jeffyscott
Posts: 13438
Joined: Tue Feb 27, 2007 8:12 am

Re: YTD S&P 500 vs SPY ETF

Post by jeffyscott »

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.
Post Reply