SPY ETF Is Buzzing on Reddit: Is There More Upside Left?

The SPDR S&P 500 ETF Trust (SPY) is among the widely discussed ETFs (exchange-traded funds) on the popular social media platform Reddit. While the ETF is buzzing on Reddit and has significantly gained mentions, analysts’ price targets suggest it has notable upside potential from current levels. 

With this backdrop, let’s delve into this trending Reddit ETF.

What is the Forecast for the SPY ETF?

SPY ETF is one of the most popular ETFs to gain exposure to shares of the biggest corporations in the U.S. It has the S&P 500 Index (SPX) as the benchmark and aims to generate similar returns. The ETF is highly diversified and offers exposure to 24 separate industry groups, focusing primarily on large-cap stocks. 

The ETF has achieved an impressive average annualized return of 12.66% over the past ten years while maintaining a meager expense ratio of 0.09%.

Thanks to the recovery in the equity market, SPY has gained about 14.54% year-to-date. Due to the recent gains, the SPY ETF has a forward P/E (price-to-earnings) multiple of 19.85, which appears slightly higher given the EPS growth forecast of 13.75% over the next three to five years and a dividend yield of 1.59%. 

Overall, SPY has a Moderate Buy consensus rating on TipRanks. Further, the average SPY stock price target of $521.11, based on the consensus analyst ratings on its 504 holdings, implies 20.8% upside potential from current levels.

While analysts are cautiously optimistic, SPY has an Outperform Smart Score of 8 out of 10 on TipRanks. 

Bottom Line

The SPDR S&P 500 ETF Trust is a smart investment to generate steady returns and diversify risk. It provides exposure to the large-cap companies listed on the exchange and offers decent upside potential from current levels. 

However, investors should note that this buzzing Reddit ETF appears slightly expensive on the valuation front. Nonetheless, its low expense ratio makes it appealing.

Disclosure