The Individual Investor’s Guide to Exchange-Traded Funds 2013
The exchange-traded fund (ETF) industry marked its 20th anniversary this year.
The SPDR S&P 500 ETF (SPY) was incepted on January 22, 1993, after being conceived and championed by the late Nathan Most. According to Institutional Investor Magazine, Most came up with the idea while seeking new revenue opportunities for the American Stock Exchange (Amex). Using commodities as a basis, he thought of a product where a depository would hold blocks of securities and issue receipts for them, which in turn could be divided into many small pieces tradable on the exchange. (SPDR is an acronym for Standard & Poor’s depositary receipts.)
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