The SPDR S&P 500 ETF Trust (SPY) is a viable option for investors looking for a cost-effective, transparent, and highly liquid alternative to the S&P 500 Index (SPX). It closely mirrors the S&P 500, offering investors a diversified portfolio of large-cap U.S. stocks without the need to purchase them individually. Importantly, the SPY ETF boasts a favorable Outperform Smart Score on TipRanks, signaling positive performance signals. Additionally, the analysts’ average price target suggests there is potential for further growth.
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SPY ETF: Key Factors to Consider
One of the major factors worth considering is the SPY ETF’s considerably low fees in comparison to actively managed mutual funds. It has an expense ratio (the cost of managing the ETF) of 0.09%, which makes it an appealing investment.
Furthermore, SPY is a highly liquid investment option with a substantial trading volume. This high liquidity ensures that investors can easily buy or sell shares of the ETF as needed, contributing to its attractiveness.
Additionally, the ETF has delivered an average annualized return of 12.73% in the past decade as of June 2023. Moreover, SPY pays a 1.45% annual dividend yield, which enhances investors’ returns over the long run.
Favorable Smart Score
According to TipRanks’ Smart Score System, SPY has a Smart Score of 8 out of 10, which indicates that the ETF could outperform the broader market over the long term. It is worth highlighting that more than 50% of its holdings boast an Outperform Smart Score (i.e., a score of 8 or higher).
As per the data, retail investors have displayed a Very Positive signal towards the stock. About 16.9% of TipRanks’ retail investors increased their holdings of the SPY in the last 30 days. This suggests an active interest and engagement by retail investors in the stock.
Furthermore, the SPY ETF enjoys bullish sentiment from bloggers and Positive news sentiment on TipRanks.
Is SPY a Good ETF to Invest in?
SPY has a Moderate Buy consensus rating on TipRanks. Further, the average SPY stock price target of $515.43, based on the consensus analyst ratings on its 505 holdings, implies 14.2% upside potential.
Based on TipRanks’ easy-to-read technical summary signals, the SPY ETF stock is a Buy in the one-day time frame. This is based on 12 Bullish, six Neutral, and four Bearish signals.
Top 10 Performing Stocks in SPY ETF
Several holdings within the SPY ETF have delivered robust returns over the past year. We present to you the top 10 stocks that stand out as notable winners with gains exceeding 80%. Importantly, analysts believe there is further upside potential for most of them.
- Nvidia Corporation (NVDA)
- Royal Caribbean Cruises (RCL)
- Pultegroup (PHM)
- Fair Isaac Corporation (FICO)
- General Electric (GE)AVGO,
- Netflix, Inc. (NFLX)
- Meta Platforms, Inc. (META)
- Eli Lilly And Company (LLY)
- Axon Enterprise, Inc. (AXON)
- Broadcom, Inc. (AVGO)
