Hey guys. I am relatively new to trading. But I want to play the S&P 500 because I have heard it is the safest long term play. I have sort of a 2 part question, can someone help me out? 1. What exactly is a expense ratio for a ETF such as spy, and when do I get charged it? 2. I know stocks can be pumped! Based on demand. But can that happen to SPY? Isn’t its price determined by the price of 500 other companies and not buy demand? So if a lot of people buy SPY, does Spy increase in price??? Or does that money get distributed into 500 companies and those 500 companies’ stocks increase, and in turn increases SPY price?
The expense ratio of the SPY is 0.095% This fee is swept from your investment fund, you dont see a bill, you will not get an item charge on any document. You will not feel it. SPY can be pumped. If you can pump AAPL,MSFT and AMZN the SPY will go up. It might be pretty tough though Here are the stocks and their weightings in the SPY:
Ah, Okay thanks! If everyone were to buy SPY sort of like how we did to GME 3 months ago, But on a MUCH LARGER scale... does that pump SPY's price directly?? and If so, How? isn't the price determined by AAPL,MSFT and AMZN, etc... Or does SPY's price move entirely based on these 500 companies and "demand" for the actual SPY stock means nothing?
If you got $32T worth of buying, sure. SPY moves based upon the move the companies in the image above make. The bigger the square, the more weight the company has. If AAPL goes +10%, it will drag the entire SPY higher.
