Re: SPDRs

From: David Martin <dmartin@hc.ti.com>
Subject: Re: SPDRs
Date: Fri, 29 Jan 1999 17:54:33 -0600 (CST)

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Douglas writes:

>The advantages of SPDRs over an S&P 500 index fund are: there are no capital
>gains distributed by SPDRs; the expense ratio charged by SPDRs is much less
>than the most efficient index fund, about 0.1845%; and you can buy and sell
>SPDRs on an intraday basis. The downside of SPDRs is that you have to pay
>commissions to buy them, but the economies of a discount broker and the
>lower expense ratio make this meaningless when you're investing any
>substantial amount.

	But a lot of people do not invest "substantial amounts". If
you want to put $100 per month into the Vangaurd S&P 500 Index Fund,
there is no fee. But if you pay a $10 fee to a broker to buy $100 of
SPDRs, then you're down 10% already.

						-David Martin

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