## [# State Street Europe S&P 500 ETF Hits $10B After Fee Cut](/sections/news/state-street-europe-sp-500-etf-hits-10b-after-fee-cut)
# State Street Europe S&P 500 ETF Hits $10B After Fee Cut
State Street ETF hits $10b in assets, just as the company's flagship SPY reaches $500 billion in the U.S.
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[By Lauren Gibbons ](/authors/lauren-gibbons)
Feb 27, 2024
Edited by: ETF.com Staff
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State Street Global Advisors’ S&P 500 ETF has doubled in size since it [slashed its fees](https://www.etfstream.com/articles/state-street-to-offer-europe-s-cheapest-s-and-p-500-etf-after-drastic-fee-cut) late last year, just as its flagship U.S. fund reaches a half-trillion dollars in assets.
The SPDR S&P 500 UCITS (SPY5) now holds more than $10.3 billion in assets under management (AUM), growing from just over $5bn since it reduced its fee from 0.09% to 0.03% on 23 October.
SPY5 has seen $4.2 billion in the four months to Feb. 23, according to data from Morningstar Direct, with the remaining AUM coming from market gains.
The flagship US index is up 21% over the same period an impressive run that saw it hit an [all-time high](https://www.etfstream.com/articles/what-s-next-for-etfs-after-s-and-p-500-hits-record-high) at the end of January. [**SPDR S&P 500 ETF Trust (SPY)**](/spy) became the first ETF in history to hit a half-trillion dollars in assets under management on Thursday.
## SPY Surges in Europe and U.S.
SPY, which gives investors exposure to some of U.S.'s largest companies through a market cap weighted tracking of the S&P 500 index, reached $502 billion in AUM shortly before U.S. markets closed on Friday, State Street Corp., the issuer of the fund said. The fund currently has $499 billion in assets.
The fund, which started trading in 1993, has been the world's largest for AUM and a long-time golden goose of State Street, the world's third largest ETF issuer.
The S&P 500 has continued its rally, gaining 2.1% on Feb. 22 following chip giant Nvidia’s [blockbuster earnings](https://www.etfstream.com/articles/etfs-with-high-nvidia-exposure-jump-on-earnings-beat), its best day since January 2023.
Even without the gains, SSGA’s fee cut has succeeded in peaking investor interest in the ETF as it booked [$1.2 billion inflows](https://www.etfstream.com/articles/state-street-s-s-and-p-500-etf-nets-eur1bn-inflows-following-fee-cut) in the month after it reduced the total expense ratio (TER).
The move saw the U.S. giant undercut its rivals to offer the cheapest S&P 500 ETF in Europe, [pricing it below](https://www.etfstream.com/articles/king-of-the-sp-500-etfs-vanguard-vusa-or-invesco-spxp) the Invesco S&P 500 UCITS ETF (SPXS) which has a TER of 0.05%.
SSGA incorporated SPY5 into its securities lending program—along with 66 other ETFs—in a bid to make the move more economically viable.
Despite the move, investors have been quick to point out the need to consider [the total cost of ownership](https://www.etfstream.com/articles/s-and-p-500-etf-spreads-shows-why-investors-must-consider-total-cost-of-ownership) when selecting ETFs, taking into account factors such as liquidity, spreads, tracking error and replication methodology.
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[ Lauren Gibbons Reporter ](/authors/lauren-gibbons)
Lauren joined ETF Stream as a reporter in December 2023. Previously, she covered small and mid-cap equities for a financial media company, with a… [View Bio](/authors/lauren-gibbons)
Related Topics [Europe](http://www.etf.com/topics/europe)