The S&P 500 Index (SPX) hit an all-time high yesterday, indicating a robust bull market. Moreover, recent positive economic data and resilient consumer sentiment suggest the potential for continued market growth. Thus, investors could consider investing in S&P 500 exchange-traded funds (ETFs) that track the performance of the SPX index. Using the TipRanks ETF Screener, we have shortlisted two such ETFs with upside potential: the iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO).
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Let’s take a look at what Wall Street thinks about these two ETFs.
iShares Core S&P 500 ETF (IVV)
The IVV ETF is the second-largest exchange-traded fund in the U.S. in terms of assets under management (AUM). IVV has $429.66 billion in AUM, with the top 10 holdings contributing 32.16% of the portfolio. Meanwhile, the ETF’s low expense ratio of 0.03% is encouraging. Interestingly, the IVV ETF has generated a return of 22.2% over the past year.
On TipRanks, IVV has a Moderate Buy consensus rating. This is based on the consensus rating of each stock held in the portfolio. Of the 503 stocks held, 387 have Buys, 106 have a Hold rating, and 10 stocks have a Sell rating. The average IVV ETF price forecast of $545.87 implies a 9.1% upside potential from the current levels.
Vanguard S&P 500 ETF (VOO)
The VOO ETF is the third largest exchange-traded fund by net assets in the U.S. VOO has $397.55 billion in AUM, with the top 10 holdings contributing 30.81% of the portfolio. Its expense ratio stands at 0.03%. The VOO ETF has gained 23.3% in the past year.
Overall, the VOO ETF has a Moderate Buy consensus rating. Of the 505 stocks held, 387 have Buys, 108 have a Hold rating, and 10 have a Sell rating. The average VOO ETF price forecast of $499.50 implies a 9.1% upside potential from the current levels.
Concluding Thoughts
The S&P 500 ETFs offer several benefits, such as exposure to large companies, low cost, and long-term growth opportunities. Furthermore, these ETFs have better liquidity, which means that investors can easily buy and sell shares without having to give up returns.
