The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is managed by SSGA Funds Management, Inc. (SSGA FM), serving as the investment adviser to the fund. SSGA FM employs a sampling strategy to track the S&P SmallCap 600 Index, which means the fund doesn't need to purchase all the securities in the index. Instead, it may invest in a subset of the index's securities to achieve similar risk and return characteristics. The fund is classified as diversified but may become non-diversified due to its index-tracking approach. Under normal market conditions, SPSM invests at least 80% of its assets in securities from the S&P SmallCap 600 Index. Additionally, it may invest in non-index equity securities, cash equivalents, money market instruments, and use futures contracts to track the index.
While the SPDR Portfolio S&P Small Cap ETF (SPSM) primarily focuses on tracking the performance of the S&P SmallCap 600 Index, it also reflects the dividend distribution of its underlying index constituents. The ETF's dividend distributions typically follow a quarterly schedule and are influenced by the dividend policies and performances of the individual companies within the S&P SmallCap 600 Index. While SPSM aims to maintain a diversified portfolio, it may invest a significant portion of its assets in a limited number of issuers due to its tracking strategy. Investors in SPSM can potentially benefit from both capital appreciation and periodic dividend returns.
The SPDR Portfolio S&P Small Cap 600 ETF (SPSM) seeks to mirror the performance of the S&P SmallCap 600 Index through a sampling strategy. Instead of purchasing all of the index's securities, SPSM may buy a subset of them, aiming to maintain similar risk and return characteristics. The fund typically invests at least 80% of its assets in index constituents but may also include equity securities not in the index, cash, money market instruments, or futures contracts. The S&P SmallCap 600 Index measures the performance of small-cap U.S. stocks, and its composition is determined by S&P Dow Jones Indices LLC, the Index Provider, which periodically rebalances the index. As of August 31, 2022, SPSM had a significant exposure to the financial and industrial sectors and included 601 stocks from the S&P SmallCap 600 Index.
The correlation aspect of the SPDR S&P 600 Small Cap ETF (SPSM) is essential for investors looking to understand its behavior relative to the broader small-cap segment of the U.S. equity market. Since SPSM tracks the S&P SmallCap 600 Index, its correlation with this index is expected to be strong. This high correlation makes SPSM a valuable tool for investors seeking exposure to small-cap stocks and wanting to manage their portfolio risk effectively. To delve deeper into SPSM's correlation with other assets or sectors, investors can leverage ETF Insider's web app, which provides comprehensive and insightful data along with user-friendly visualizations, helping them identify overlaps and make informed investment decisions.
The SPDR Portfolio S&P 600 Small Cap ETF (SPSM) primarily focuses on tracking the performance of the S&P SmallCap 600 Index. This ETF employs a sampling strategy, investing in a subset of the securities in the Index to achieve similar risk and return characteristics. SPSM is classified as a diversified fund but may become non-diversified due to tracking the Index. As of August 31, 2022, the fund had significant exposure to the financial and industrial sectors, although sector weightings may vary over time.
The exposure characteristic of the SPDR Portfolio S&P 600 Small Cap ETF (SPSM) is closely tied to the S&P SmallCap 600 Index. This ETF aims to replicate the performance of the small-cap segment of the U.S. equity market, which includes companies with market capitalizations between $850 million and $3.7 billion. By investing primarily in the securities that make up the Index, SPSM provides investors with a diversified portfolio of small-cap stocks, offering exposure to various sectors and industries within this segment.
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