Spiders: Where Are the Bugs?

Edwin J. Elton
Additional contact information
Edwin J. Elton: New York University

The Journal of Business, 2002, vol. 75, issue 3, 453-472

Abstract: This article examines the characteristics and performance of an exchange-traded index fund known by the name of Standard & Poor's Depository Receipts or SPDR or Spiders. The Spiders' net asset value is kept close to market price by the ability to create and delete them by in-kind transactions. Spiders underperform the S&P Index by 28 basis points and low-cost index funds by 18 points. This is primarily due to the lost income caused by holding dividends received on the underlying shares in cash. Nevertheless, Spiders are the most actively traded stock and the instrument of choice for most hedging.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (69)

Downloads: (external link)
http://dx.doi.org/10.1086/339891 main text (application/pdf)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jnlbus:v:75:y:2002:i:3:p:453-472

Access Statistics for this article

More articles in The Journal of Business from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().