Is SPY a safe investment?
7/1/2025 10:40pm
**SPY is generally considered a safe investment for long-term holders**, and here's why:
1. **Diversification and Low Volatility**: The SPDR S&P 500 ETF Trust (SPY) tracks the S&P 500, which provides exposure to a broad range of large-cap U.S. stocks. This diversification helps reduce risk associated with holding a smaller number of stocks. Additionally, the S&P 500 has a reputation for lower volatility than some other indices.
2. **Solid Historical Performance**: With a 13.43% percentage change as of July 1, 2025, SPY has shown a strong performance, which is a positive indicator for long-term investors.