485BPOS: SPDR S&P 500 ETF Trust Renamed, Reports Strong Performance

The SPDR S&P 500 ETF Trust, now State Street SPDR S&P 500 ETF Trust, filed an amendment detailing its financial performance, operational structure, and risk factors, including a name change effective January 26, 2026.

Summary

• The Trust's name has officially changed from SPDR S&P 500 ETF Trust to State Street SPDR S&P 500 ETF Trust, effective January 26, 2026.
• The investment objective remains to provide results that generally correspond to the price and yield performance of the S&P 500 Index.
• Estimated annual ordinary operating expenses are 0.0945% of Trust Average Net Assets, with the Trustee voluntarily waiving a portion of its fee until February 1, 2027, to maintain this cap.
• The Trust's portfolio turnover rate for the fiscal year ended September 30, 2025, was 3%.
• Units are listed for trading on NYSE Arca (symbol SPY), Singapore Exchange (S27), Tokyo Stock Exchange (1557), and the Australian Securities Exchange.
• Net assets at September 30, 2025, totaled $680,289,277,221, with a net asset value per Unit of $666.31.
• Total Investment Income for the year ended September 30, 2025, was $7,996,825,183, leading to Net Investment Income of $7,412,419,527.
• The Trust reported a net realized gain of $95,727,122,530 for the year ended September 30, 2025.
• Net change in unrealized appreciation/depreciation for the year ended September 30, 2025, was a negative $(1,321,451,984).
• The net increase in net assets from operations for the year ended September 30, 2025, was $101,818,090,073.
• The Trust held 1,020,982,116 Units outstanding as of September 30, 2025.
• The five largest industry groups represented in the S&P 500 Index as of December 31, 2025, were Semiconductors & Semiconductor Equipment (14.19%), Software & Services (11.29%), Media & Entertainment (9.82%), Technology Hardware & Equipment (8.94%), and Financial Services (7.98%).
• The Trust holds capital loss carryforwards of $4,897,428,602 (short term) and $22,402,327,685 (long term) as of September 30, 2025.

Sentiment

Score: 7

Explanation: The filing indicates stable operations, strong historical performance tracking its benchmark, and a competitive expense structure. The name change is a minor administrative update. While there are inherent market risks and a slight negative in unrealized appreciation and net unit redemptions for the latest fiscal year, the overall financial health and adherence to its investment objective are positive.

Positives

• The Trust demonstrated strong historical performance, with average annual total returns (before taxes, based on NAV as of December 31, 2025) of 17.73% for one year, 14.28% for five years, and 14.66% for ten years.
• The expense ratio remains highly competitive at 0.0945%, further supported by a voluntary fee waiver from the Trustee extended until February 1, 2027.
• The Trust consistently qualifies as a Regulated Investment Company (RIC) for U.S. federal income tax purposes, which generally exempts it from corporate income tax on distributed income.
• Significant net realized gains of $95.73 billion were reported for the fiscal year ended September 30, 2025, contributing to a substantial increase in net assets from operations.

Negatives

• The net change in unrealized appreciation/depreciation was negative $(1,321,451,984) for the fiscal year ended September 30, 2025, a decline compared to prior years.
• Net assets from unit transactions showed a decrease of $(3,657,984,114) for the fiscal year ended September 30, 2025, indicating net redemptions over creations.
• The Trust's passive management strategy means it will hold constituent securities of the Index regardless of the current or projected performance of a specific security or industry sector, which could lead to lower returns than an actively managed fund.
• No dividend reinvestment service is directly provided by the Trust, requiring investors to arrange this through their broker-dealers.

Risks

• Passive Strategy/Index Risk: The Trust is not actively managed and will hold Index securities regardless of individual security or sector performance, potentially leading to lower returns than an active strategy.
• Index Tracking Risk: The Trust's return may not perfectly match the Index due to expenses, transaction costs, or the unavailability of certain Index Securities.
• Equity Investing and Market Risk: Investments are subject to market fluctuations caused by economic and political developments, interest rate changes, perceived trends, war, acts of terrorism, infectious diseases, and recessions.
• Geopolitical Risk: Ongoing armed conflicts (e.g., Ukraine-Russia, Israel-Hamas) could have severe adverse effects on regional/global economies and markets, causing volatility even without direct exposure to those issuers.
• Concentration Risk: The Trust's investments may be concentrated in an industry or group of industries if the underlying Index is concentrated, increasing volatility.
• Information Technology Sector Risk: A significant portion of the Trust's assets are currently invested in the information technology sector, making its performance vulnerable to intense competition, rapid technological developments, obsolescence, and dependence on intellectual property rights within that sector.
• Asset Category Risk: The Portfolio Securities may underperform the returns of other securities or indexes that track different industries, markets, or asset classes.
• Trading Issues: Trading in Units on exchanges may be halted due to market conditions or extraordinary market volatility, and there is no assurance of continued listing or trading volume. Delisting would result in the Trust's termination.
• Fluctuation of NAV; Unit Premiums and Discounts: Market prices of Units may deviate significantly from the Net Asset Value (NAV), especially during periods of market volatility, potentially leading to losses if buying at a premium or selling at a discount.
• Costs of Buying or Selling Units: Investors incur brokerage commissions and bid/ask spreads in the secondary market, which can significantly reduce investment results, particularly for small or frequent trades.
• Large Cap Risk: Returns on investments in large U.S. companies could trail the returns on investments in smaller and mid-sized companies.
• Adverse Tax Consequences: Investors should carefully consider the U.S. federal, state, local, and other tax consequences of owning and disposing of Units.
• Clearing and Settlement Delays/Failures: In-kind contributions or redemptions of Creation Units may be delayed or fail, especially for transactions outside the continuous net settlement clearing process.

Future Outlook

The Trust intends to continue to qualify as a Regulated Investment Company (RIC) in current and future taxable years. The Trustee has voluntarily agreed to extend its fee waiver until February 1, 2027, aiming to maintain the total annual operating expenses at 0.0945%. The License Agreement for the S&P 500 Index is scheduled to terminate on November 29, 2031, but its term may be extended.

Management Comments

• The Sponsor and the Trustee have determined to change the name of the Trust from SPDR S&P 500 ETF Trust to State Street SPDR S&P 500 ETF Trust to aid in the marketing and distribution of the Trust's units.

Industry Context

The State Street SPDR S&P 500 ETF Trust (SPY) operates within the highly competitive Exchange-Traded Fund (ETF) industry, specifically targeting broad market exposure to U.S. large-cap equities by tracking the S&P 500 Index. Its passive investment strategy and low expense ratio align with the ongoing trend of investors seeking cost-effective, transparent, and diversified index-based products. The Trust's listing on multiple international exchanges (Singapore, Tokyo, Australia) highlights its global accessibility and relevance in the broader financial market, catering to a diverse investor base seeking exposure to the U.S. equity market.

Comparison to Industry Standards

• The Trust's 1-year total return of 17.73% (NAV, as of 12/31/2025) is slightly below the S&P 500 Index return of 17.88%, reflecting typical tracking error and operational expenses inherent in index funds.
• The 5-year average annual total return of 14.28% (NAV, as of 12/31/2025) is marginally lower than the S&P 500 Index return of 14.42%, indicating consistent, but not perfect, index replication.
• The 10-year average annual total return of 14.66% (NAV, as of 12/31/2025) also closely trails the S&P 500 Index return of 14.82%, demonstrating long-term tracking effectiveness.
• The expense ratio of 0.0945% is highly competitive and generally below the average for actively managed equity funds and on par with or better than many other large-cap index ETFs, such as the iShares Core S&P 500 ETF (IVV) or Vanguard S&P 500 ETF (VOO), which typically have expense ratios around 0.03-0.04%.
• The portfolio turnover rate of 3% is low, which is standard for a passively managed index fund, minimizing transaction costs and aligning with the objective of replicating the S&P 500 Index.

Corporate Governance

Related Party Transactions

• PDR Services LLC (Sponsor) is an indirect, wholly-owned subsidiary of Intercontinental Exchange, Inc. (ICE).
• State Street Global Advisors Trust Company (Trustee) is a direct wholly-owned subsidiary of State Street Bank and Trust Company (SSBT).
• The Trust invests in companies considered affiliates of the Trustee (State Street Corp.) and the Sponsor (ICE), including Intercontinental Exchange, Inc. and State Street Corp.
• The Trustee pays SSBT for accounting, custodian, transfer agent, and administrative services.
• The Sponsor is reimbursed by the Trust for certain expenses, up to a maximum of 0.20% of the Trust's NAV, which includes fees paid to S&P for the license agreement.
• State Street Global Advisors Funds Distributors, LLC (SSGA FD), an affiliate of the Trustee, holds a license agreement with S&P and markets/promotes the Trust, with the Sponsor reimbursing SSGA FD for these expenses.
• An affiliate of SSGA FD receives fees from the Trustee for providing on-line creation and redemption functionality through its Fund Connect application.
• ALPS Distributors, Inc. (Distributor) receives a flat annual fee of $25,000 from the Sponsor for its services, which is not reimbursed by the Trust.

Stakeholder Impact

• Shareholders (Unitholders): Benefit from continued low expense ratio due to the fee waiver, consistent tracking of the S&P 500 Index, and quarterly dividend distributions. They are subject to market risks and potential premiums/discounts when trading on secondary markets.
• Institutional Investors (Authorized Participants): Can continue to create and redeem Creation Units in-kind, subject to transaction fees, facilitating market liquidity.
• Sponsor (PDR Services LLC): Continues its role in managing the Trust, is reimbursed for certain expenses, and benefits from the Trust's operational activities.
• Trustee (State Street Global Advisors Trust Company): Continues its role, receives fees for its services, and voluntarily extends a fee waiver to maintain competitive operating expenses.
• S&P Dow Jones Indices LLC: Continues to receive licensing fees for the use of the S&P 500 Index.
• Broker-dealers: Facilitate secondary market trading of Units and may receive promotional incentives from the Sponsor.

Next Steps

• The Trustee will promptly furnish DTC Participants with written notice of the Trust Agreement amendment for transmittal to Beneficial Owners.
• The Trustee's voluntary fee waiver is in effect until February 1, 2027.
• Annual reports will be furnished to Beneficial Owners after the end of each fiscal year.

Key Dates

Recommendation

The State Street SPDR S&P 500 ETF Trust (SPY) is a well-established, passively managed fund designed to track the S&P 500 Index. The filing confirms its continued adherence to this objective, competitive expense ratio (further supported by a fee waiver extension), and strong historical performance consistent with the underlying index. While there was a slight negative in unrealized appreciation for the latest fiscal year and a net decrease in assets from unit transactions, these are minor fluctuations in the context of its overall scale and long-term performance. The name change is administrative. Given its role as a core index investment, a 'Hold' recommendation is appropriate for investors seeking broad market exposure, as there are no new fundamental drivers for a 'Buy' or 'Sell' decision based on this routine update.

Keywords

SPDR, S&P 500, ETF, Exchange Traded Fund, Index Fund, Equity, Investment Trust, Passive Investing, Market Risk, Financial Performance, State Street, PDR Services, NYSE Arca, SPY