The First ETF Ever Created Just Turned 33. Here Is Why It Is Still One of the Most Powerful Investment Available

"SPY is now more than 33 years old and still going strong. It's no longer the largest ETF, but it remains a titan with roughly $651 billion in AUM."

"According to State Street Investment Management, as of March 23, the fund traded about 29 million shares in a single day, with an incredibly tight 0.01% 30-day median bid-ask spread."

"SPY cannot reinvest dividends from the underlying S&P 500 companies. Instead, it holds that cash, which creates a modest drag on performance over time."

"Despite its quirks, SPY still offers something that few investments can match. It remains one of the simplest, most efficient, and most powerful ways to build long-term wealth."

The iShares S&P/TSX 60 Index ETF was the first ETF, originating in Canada in 1990. The SPDR S&P 500 ETF Trust, launched in 1993, is significant for U.S. investors. SPY has approximately $651 billion in assets under management and boasts high liquidity with 29 million shares traded daily. Its expense ratio is low but higher than newer competitors. SPY cannot reinvest dividends between distributions, slightly affecting performance. Despite this, it remains a powerful investment for long-term wealth building due to its efficiency and simplicity.

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