Best SPDR ETFs to Watch in 2025

Below, we’ll examine a selection of popular and well-regarded SPDR ETFs, highlighting their key characteristics to help you make informed investment decisions. We will consider factors such as expense ratios, top holdings, and reasons to consider each ETF.

• Expense Ratio: 0.0945%
• Top Holdings: Apple, Microsoft, Amazon, NVIDIA, Alphabet
• Why Consider It? SPY is the most well-known and widely traded ETF, tracking the S&P 500 index. It’s a core holding for many investors due to its broad exposure to the U.S. large-cap market and its high liquidity.

• Expense Ratio: 0.16%
• Top Holdings: UnitedHealth Group, Microsoft, Goldman Sachs, Home Depot, Caterpillar
• Why Consider It? DIA tracks the Dow Jones Industrial Average, providing exposure to 30 of the largest and most influential U.S. companies. It offers a different perspective on the U.S. large-cap market compared to SPY.

• Expense Ratio: 0.23%
• Top Holdings: Super Micro Computer Inc, Deckers Outdoor Corp, Fair Isaac Corp, Quanta Services Inc, AECOM
• Why Consider It? MDY offers exposure to U.S. mid-cap companies, which can provide a balance between growth and stability. It is often considered a complement to large-cap and small-cap investments.

• Expense Ratio: 0.4%
• Top Holdings: Gold Bullion
• Why Consider It? GLD tracks the price of gold bullion, providing a convenient way to invest in gold. It’s often used as a hedge against inflation and economic uncertainty.

• Expense Ratio: 0.35%
• Top Holdings: IBM, Enbridge Inc., National Retail Properties Inc., Consolidated Edison Inc., Franklin Resources Inc.
• Why Consider It? SDY invests in dividend-paying companies within the S&P Composite 1500 Index that have increased their dividends for at least 20 consecutive years. It offers a potential income stream and exposure to established, dividend-focused companies.

Discover the capabilities of InvestingPro for evaluating SPDR ETFs. Access in-depth analysis of SPDR ETFs, easily compare expense ratios, 1-year, and 5-year returns:

• Comprehensive ETF Data: InvestingPro offers detailed information on key ETF metrics, including asset allocation, sector exposure, and dividend yields.
• Performance Benchmarking: Compare ETF performance against benchmarks and peer groups to assess relative strength and identify top performers.
• Fundamental Analysis: Access risk metrics and volatility data to evaluate the potential downside of SPDR ETF investments.

Investing in SPDR ETFs is generally considered a sound strategy for investors seeking broad market exposure, diversification, and relatively low risk. However, it’s crucial to assess your financial goals, risk tolerance, and time horizon before investing.

• Broad Market Exposure: SPDR ETFs provide access to various market segments, from large-cap stocks to mid-cap companies and even commodities like gold.
• Low Cost: Many SPDR ETFs have relatively low expense ratios, making them cost-effective for long-term investing.
• Liquidity: SPDR ETFs are generally highly liquid, allowing investors to easily buy and sell shares on exchanges.
• Transparency: SPDR ETFs disclose their holdings regularly, providing transparency into your investments.

• Market Risk: ETF values can fluctuate with market conditions. A general market downturn can negatively impact SPDR ETF performance.
• Tracking Error: ETFs may not perfectly track their underlying index due to factors like expense ratios and sampling techniques.
• Sector Concentration: Some SPDR ETFs may be heavily weighted in specific sectors, increasing their sensitivity to sector-specific risks.

Choosing the right SPDR ETF requires careful analysis and consideration of several factors. Here are some essential steps to help you find the top SPDR ETFs for your investment needs:

• Scrutinize the underlying assets to assess risk and alignment with your investment objectives. Determine if the ETF’s holdings align with your specific investment interests. Use InvestingPro to gain insights into sector allocation, top holdings, and diversification metrics.

• Lower expense ratios mean more of your money stays invested. Compare costs across different SPDR ETFs, balancing fees with fund performance. Use InvestingPro to easily assess and compare expense ratios.

• Historical performance isn’t a guarantee of future returns, but it provides insights into how the ETF reacts to market conditions. Ensure the ETF has sufficient trading volume for easy buying and selling. Within InvestingPro you can find and compare performance across ETF benchmarks.

• Each ETF has a specific investment theme. Before investing, ensure the ETF’s theme aligns with your overall investment strategy and goals. For instance, are you looking for broad market exposure, dividend income, or a hedge against inflation?

SPDR ETFs offer broad market access, low costs, high liquidity, and transparency.

Consider your investment goals, risk tolerance, and the ETF’s underlying assets, expense ratio, and performance history.

Yes, SPDR ETFs can be suitable for both beginners and experienced investors due to their simplicity and accessibility.

SPDR ETFs offer exposure to various asset classes and market segments, allowing you to easily diversify your portfolio and reduce risk.

SPDR ETFs can generate taxable events through dividend distributions and capital gains distributions. It’s important to understand the tax implications and consult with a tax advisor if needed.