The SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 Index (SPX), has increased about 11% year-to-date (YTD). The bull run comes despite macro uncertainty prevailing in the market, mostly due to a rally in tech stocks, including Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT). Moreover, based on technical indicators, SPY is a Strong Buy near its current levels.
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According to TipRanks’ technical analysis tool, SPY ETF stock’s 50-Day EMA (exponential moving average) is 409.58, while its price is $420.18, making it a Buy. Further, the moving average convergence divergence (MACD) indicator also signals a bullish trend.
Meanwhile, its RSI (Relative Strength Index) is 59.79, implying a Neutral signal. At the same time, SPY’s price rate of change (ROC) of 1.76 points to an uptrend.
In a nutshell, SPY is a Strong Buy based on TipRanks’ easy-to-read technical summary signals (which combine the moving averages and the technical indicators into a single, summarized call).
Is SPY a Buy, Hold, or Sell?
SPY has a Moderate Buy analyst consensus rating on TipRanks, and the average price target of $475.66 implies 13.2% upside. Among the 6,190 analysts providing ratings on 505 holdings of SPY, 59.40% have given a Buy rating, 35.11% have assigned a Hold rating, and 5.49% have given a Sell rating.
Moreover, according to TipRanks’ Smart Score System, SPY has a smart score of eight, which indicates that the ETF could outperform the broader market over the long term.
SPY ETF Price
At yesterday’s close, SPY ETF’s price was $420.18.
The SPY ETF helps investors enjoy diversification and provides an opportunity to invest in some of the key stocks. The ETF is more appealing because of its low expense ratio of 0.09%. Impressively, SPY has delivered an average annualized return of 12.1% in the past decade, ending in March 2023.
