Investors pour $57B into cheaper SPYM ETF, challenging SPY's dominance for long-term holders.
In 2026, investors have moved about $57 billion into the State Street SPDR Portfolio S&P 500 ETF (SPYM), attracted by its lower fees (0.02% vs. SPY's 0.0945%) and more efficient structure as an open-end fund. SPYM tracks the same S&P 500 index as SPY but reinvests dividends immediately and lends securities, offering better long-term compounding. While SPY remains dominant for traders due to its unmatched liquidity and options market, SPYM is becoming the preferred choice for buy-and-hold investors seeking cost efficiency. This shift reflects a growing awareness that paying higher fees for the same index portfolio is unnecessary for long-term investors.
In 2026, investors have moved about $57 billion into the State Street SPDR Portfolio S&P 500 ETF (SPYM), attracted by its lower fees (0.02% vs. SPY's 0.0945%) and more efficient structure as an open-end fund. SPYM tracks the same S&P 500 index as SPY but reinvests dividends immediately and lends securities, offering better long-term compounding. While SPY remains dominant for traders due to its unmatched liquidity and options market, SPYM is becoming the preferred choice for buy-and-hold investors seeking cost efficiency. This shift reflects a growing awareness that paying higher fees for the same index portfolio is unnecessary for long-term investors.
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