The world's largest and most traded ETF, giving you exposure to 500 of America's biggest companies including Apple, Microsoft, Amazon, and NVIDIA.
SPY (SPDR S&P 500 ETF Trust) is the world's first and largest exchange-traded fund, launched in 1993 by State Street Global Advisors. It tracks the S&P 500 Index, which represents the 500 largest publicly traded companies in the United States.
For New Zealand investors in 2026, SPY remains one of the most popular ways to gain exposure to the US stock market. When you buy one share of SPY, you're effectively buying a tiny slice of 500 companies including tech giants like Apple, Microsoft, Amazon, Alphabet (Google), and NVIDIA.
| Company | Ticker | Weight |
|---|---|---|
| Apple Inc. | AAPL | 7.2% |
| Microsoft Corp. | MSFT | 6.8% |
| NVIDIA Corp. | NVDA | 5.5% |
| Amazon.com Inc. | AMZN | 4.2% |
| Alphabet Inc. (Class A) | GOOGL | 2.3% |
| Company | Ticker | Weight |
|---|---|---|
| Meta Platforms | META | 2.2% |
| Berkshire Hathaway | BRK.B | 1.8% |
| Tesla Inc. | TSLA | 1.6% |
| JPMorgan Chase | JPM | 1.4% |
| UnitedHealth Group | UNH | 1.3% |
Note: Holdings and weights are approximate and change regularly. Top 10 holdings represent approximately 34% of the fund.
NZ investors can buy SPY through several platforms that provide access to US markets:
Account opening typically takes 1-3 business days. You'll need:
SPY trades in US dollars. Your platform will convert NZD to USD automatically, but compare FX rates:
Search for ticker "SPY" and place a buy order. You can buy fractional shares on most platforms, so you don't need the full share price (approximately US$580-620 per share in early 2026).
| Platform | Trading Fee | FX Fee | Minimum | Typical Use |
|---|---|---|---|---|
| Hatch | USD $3/trade | 0.5% | $0 | Beginners, NZ support |
| Stake | $0 | ~0.7% | $0 | Frequent traders |
| Interactive Brokers | $0-1 | 0.002% | $0 | Large portfolios ($10k+) |
| Sharesies | Included in plan | ~0.5% | $1 | Small regular investments |
As a foreign investment, SPY is subject to New Zealand's Foreign Investment Fund (FIF) tax rules. Here's what you need to know:
Most NZ investors use the FDR method, which taxes you on 5% of your opening balance each tax year, regardless of actual returns.
Example: If your SPY holdings are worth NZ$50,000 on 1 April 2026, your taxable income is $2,500 (5% x $50,000). At a 33% tax rate, you'd pay $825 in tax.
If your total foreign investments cost less than NZ$50,000, you may qualify for the de minimis exemption. However, you'll then pay tax on actual dividends received at your marginal tax rate.
Important: You must report FIF income in your annual tax return (IR3). Keep records of all purchases, sales, and dividends. Consider using tax software or an accountant familiar with FIF rules.
| ETF | Provider | Expense Ratio | AUM | Typical Use |
|---|---|---|---|---|
| SPY | State Street | 0.0945% | $550B | Liquidity, options trading |
| VOO | Vanguard | 0.03% | $450B | Lowest cost |
| IVV | iShares | 0.03% | $400B | Low cost alternative |
Verdict: While VOO and IVV have lower expense ratios, SPY offers superior liquidity and tighter bid-ask spreads. For most NZ investors, the difference is minimal. Choose based on your platform availability.
Yes, NZ investors can buy SPY through platforms like Hatch, Stake, Interactive Brokers, and Sharesies that provide access to US markets.
Most NZ platforms offer fractional shares, so you can invest with as little as $1. A full share of SPY costs approximately US$580-620 (January 2026).
Yes, SPY pays quarterly dividends, typically in March, June, September, and December. The current yield is approximately 1.3%. Dividends are paid in USD and subject to 15% US withholding tax (reduced from 30% under the NZ-US tax treaty).
SPY provides diversified exposure to the US economy and has historically delivered strong long-term returns. However, past performance doesn't guarantee future results. Consider your investment goals, risk tolerance, and time horizon.
SPY offers instant diversification across 500 companies, reducing single-stock risk. For most investors, especially beginners, ETFs like SPY are a more prudent choice than picking individual stocks.
Compare platforms available for buying SPY from New Zealand