SPDR SSO ETF (ASX:SSO)
The SPDR SSO ETF provides exposure to a diversified portfolio of Australian companies and tracks the S&P/ASX Small Ordinaries Index. SSO is designed to capture the performance of the top 200 Australian small companies based on market cap, ranking from 101 to 300.
What does the SSO invest in?
The SSO ETF aims to track the S&P/ASX Small Ordinaries Index, which is made up of the companies included in the S&P/ASX 300, but not in the S&P/ASX 100. You could buy all of these companies yourself using a share brokerage account, but that would be a very expensive and time-consuming process. ETFs are an effective way to invest in an entire sector through a single trade.
What do investors use SSO for?
The SPDR SSO ETF could be used to invest in Australian companies outside the top 100, which are likely to grow their profits over time. Navigating away from the largest ASX companies removes a lot of the exposure to the financial sector and could diversify your Australian portfolio allocation.
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