SPY and the biggest mutual funds track the S&P 500 with over 99% correlation. Same exposure. Nearly the same fees. The difference over 20 years in fees is about $500. That is not where the edge is. Tom Preston shows where it actually is.
SPY lets you sell call verticals against your position. A mutual fund cannot. One short call spread six times a year adds roughly $400 annually. Over 20 years that is $8,000 in additional returns on the same market exposure. That is the SPY advantage.
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Chapters
0:00 Bullish on the market: mutual fund or SPY
1:11 Correlation: 99%+ between SPY and the biggest funds
2:57 The fee argument: $500 over 20 years
5:27 Fractional shares solve the monthly investment objection
6:23 The real advantage: options overlays on SPY...