Say What?

| August 21, 2019
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When you buy shares of the S&P 500 Exchange Traded Fund SPY you are buying an investment with an end date.

Huh?

SPY is the largest ETF in the world, with $240.1 billion worth of assets in it as of the end of 2018.

It was the first U.S. ETF — and so the way it was set up is somewhat quirky, specifically as a “unit investment trust,” but legally that meant that it required a termination date.

According to the Bloomberg article, SPY will cease on the earlier of one of two dates: 125 years after its creation, on Jan 22, 2118, or 20 years after the last death of, get this, literally 11 essentially random people born between May 1990 and January 1993.

At least 8 of the 11 millennials — who have no specific stake in the fund — had some sort of family connection to the firms that created the entity.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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