The SPDR S&P 500 ETF (SPY +0.13%) is the original exchange-traded fund (ETF). Launched in January 1993, it's still one of the five biggest ETFs in existence with more than $718 billion in assets under management (AUM) as of Dec. 30, 2025.
What makes up the S&P 500 index has changed radically over time. Back in the early 1990s, the largest allocations belonged to energy, industrials, and consumer stocks. At the time, tech only accounted for about 5% of the index.
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Tech blew up to roughly a 35% allocation right before the tech bubble burst. Financials became the largest sector at around 22% just before the financial crisis cut that number down to the single digits. Today, of course, tech dominates again by accounting for about 34% of the index.
Over the course of its 33-year life, it's also done a terrific job of delivering strong returns for shareholders. Since inception, the fund has produced an average annual return of 10.7%. If you do the math, its cumulative lifetime return roughly comes out to a staggering 2,740%!
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That means a single $1,000 investment made when the SPDR S&P 500 ETF launched would today be worth about $28,400!
This is a testament to the power of long-term buy-and-hold investing. Even with the tech bubble, the financial crisis, the COVID bear market, and every correction in between, the S&P 500 has been one of the best long-term investment options available.
