Less expensive SPY equivalent

[Renaat]

Sounds interesting indeed.

You wonder why still take SPYG. I do see some reasons.

One could choose SPYG because it was launched in 2000 (while SPLG was only launched 5 years later), allowing for a longer backtest period.
But since it’s exactly tracking the SPX itself, SPLG wouldn’t need that.

Or, another reason: as SPYG focuses on the higher expected earnings companies, one could hope it grows faster to the entry point for the SPY investment for switching to the “classic ITM”.

However, I appreciate bringing this up, I didn’t know this and indeed nice: for investors preferring “smaller numbers” it feels like a good alternative which doesn’t take on the risks of deviation from the ironclad “classic ITM deviation” that SPY’s more selective nature carries.
A “safer start into ITM” to say so. Appreciated !

[George Halongton]

Thank you so much for talking about
SPLG in addition to SPYG, very helpful.

[George Halongton]

For anyone with a small account,
we can buy LEAPS calls on both
SPYG and SPLG. I buy both of them.
Happy New Day Happy Sober Friday

[George Halongton]

Did anyone buy the leaps calls of
SPYG and/or SPLG recently? Please
Keep us updated. Much appreciated.

[Andres Cuellar]

Looks like both SPLG and SPYG had 4:1 stock splits in October 2017. I wonder if the managers of SPY are considering a stock split as well.

[George HenHalongton]

I don’t think SPY will ever split.
SPY share price will be high like
Berkshire Hathaway class A and B.

[George Halongton]

Difference between SPYG and SPLG

SPYG is an S&P500 growth fund. That means that it consists of a subset of stocks from the S&P500 (the 500 biggest stocks trading on US exchanges, by market capitalization) that are classified as “growth.” This means that they are currently trading at a high price, relative to current earnings, which is sign that the market anticipates that the company is going to grow in the future. It currently holds 225 stocks, so not quite half the S&P500.

SPLG is the whole S&P500.

[George Halongton]

Invesco S&P 500 Eql Wght ETF
NYSEARCA: RSP

[Tej Shah]

I find there is a big spread on SPYG and SPLG. How do you guys place a trade for entry – mid price or another way?
Also, when I last looked – some strikes (50% less than CMP) were unavailable for trade. Is the lowest available strike the best in that scenario?

Thanks

[George Henry]

We can wait for the trading day when
SPYG or SPLG is red to buy the leaps call
to decrease the cost of the wide spread.

[George Henry]

I find it very helpful that both SPYG and SPLG have forward splits while SPY does not. I am sure SPYG and SPLG will have forward split soon once both of them reach to $100s to $200s in price range.

[Tim Ellis]

Thanks for that information regarding SPLG as my broker here in UK doesn’t offer options on SPYG for some reason but does on SPLG. We have very few options brokers in UK, but the welcome addition of Tastytrades a few months ago has made thing a bit better.

[George Henry]

Dear Tim Ellis,

You are welcome. I am checking on SPLG and we can buy SPLG strike price $55 expiry December 2025 for a cost of $2,000. $55 strike price has a delta of at least 0.9 and we can roll it when there there is 45 days of expiry.

[Tim]

Thanks for the advice. I bought SPLG at the $40 strike September contract. The price when I bought was $69 and I think the delta was around .94 at that time. I used the mid price on a red day a couple of days ago as someone suggested to counter the large spread. It got filled a few minutes later.

[George Henry]

Hi Tim,

So you spent almost $7k to buy SPLG.
Congrats and happy New year to you.
Please keep us updated. Thank you.

[Author]

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