product tracking an international stock index, Sections 2, 3, and 4 are more focused on a typical ETF product tracking a bond index, currency and commodity.
In 2001 the NYSE announced its request for regulatory approval for three active ETFs tracking international indexes, the Nasdaq-100 Trust Series Ι (“QQQ”), the Standard and Poor’s Depository Receipt Trust Series Ι (“SPY”) and the Dow Jones Industrial Average Trust Series Ι (“DIA”). Although these securities generated together an average daily trading volume of more than 4 $ billion, we have decided to focus the analysis of this section on the ETF SPY, the first successful ETF product tracking a stock index released by American Stock Exchange2 and characterised by an almost continuous average annual growth in assets since its inception. Designed to mirror the S&P 500 index by holding the same component stocks and matching its weighting scheme, this ETF stock index is structured to duplicate as closely as possible, before expenses, the total returns of the S&P 500 Index as confirmed by its share price structure corresponding to 1/10th of the S&P 500 index value. As a result of this underlying characteristic, the ETF SPY can offer potential investors a wide range of opportunities ranging from establishing long-term investments in the market performance of the leading companies to custom tailor asset allocations. However although this index seeks investment results corresponding generally to the price and yield performance of the S&P 500 index, there is no assurance that the performance of the S&P 500 Index can be fully matched. Exhibit N. 1 displays a summary of the performance of ETF SPY in the past five years detailing both its 52 week range and current value as at December 3rd, 2009. The first part of this exhibit identifies an intense volatility in line with other ETFs tracking indexes and generating a large disparity gap particularly during 2008 and 2009. Such a discrepancy which normally