AIM 05 Total market index ETFs

The first ETF in the US, SPY, was launched 30 years ago. It allowed retail customers to trade the "stock market" in the same manner they traded individual stocks. Today SPY is the most security traded in US stock markets. This section explains the structure and operation of ETFs benchmarked to total market indexes for stocks and bonds.

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• Required reading

  • Birth of an industry

    • Whaley 2024 On the birth of the ETF industry

    • Samuelson 1974 Challenge to judgment JPM

  • ​Active vs passive performance

    • Morningstar 2024 Active-passive barometer

    • SPIVA 20220227 Fleeting alpha evidence

    • SPIVA data (current and interactive)

  • S&P 500 products

    • S&P 500 Fact sheet

    • Morningstar 2023 US fund fee study

    • UIT vs ETF

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• Lecture notes

  • Slides

    • Support files:​

      • SPY NAV history.xlsx

      • Creation-redemption impediments.xlsx

      • Total bond market index benchmarks.xlsx

      • Total stock market index benchmarks.xlsx

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