r/investing
leaning towards spym > voo... but is there a risk spym stops tracking the s&p 500 eventually?
User considers SPLG over VOO for its lower expense ratio but worries about the risk of the ETF changing its tracked index in the future.
opening a brokerage through fidelity. wanting to invest in the s&p 500.
as much as i want to go with vanguard etfs after reading the simple path to wealth & the little book of common sense investing... spym has them beat on the expense ratio (0.02% vs. 0.03%).
(i know fidelity offers fxaix at 0.015%, but i think i want flexibility to transfer away from fidelity if i need to down the line.)
anyways - i've read that spym (formerly splg) used to track the russell 1000 until 2020 or so, and then switched to the s&p 500.
if i go all-in with spym, do i run the risk of my portfolio flipping to a different index somewhere within the next 30 years?
The difference between the Russell 1000 and the s&p500 is actually pretty minor.
The two indexes will still track each other closely.
If it does change indexes (I sort of doubt it) it most likely will track some large cap index , and most large cap indexes track the s&P500 closely anyway.
I don't think it would be something I would worry about. Even if it switched to a different index , the dow Jones large cap index. It would have near identical returns
The change from the Russell 1000 to the S&P 500 was almost certainly because the former index is much less well-known and the ETF wasn’t getting traction. Now that it has tons of assets under management it’s probably going to stick with the S&P 500. The two indices behave extremely similarly anyway.
I’m all in on SPYM, SPY and VOO are just \expensive\ per share, I like having a bit more flexibility and still get the same exposure.
I highly doubt they would change indices again.
I've been telling newbies to use SPYM in a taxable brokerage account since the S&P 500 index switch and lowered expense ratio.
Long-term holders of VOO, IVV, or SPY should continue investing into them. No point in losing your great positions for a slightly less expense ratio.