The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) tracks the S&P 500 Index (SPX) and provides investors with a smart investment option. The ETF (Exchange Traded Funds) is highly diversified as it represents a basket of over 500 companies from across eight market sectors, including technology, health care, and more. Interestingly, the SPY ETF stock has advanced about 9% year-to-date, beating the 8% rise in the S&P 500.
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One of the major factors worth considering is the SPY ETF’s considerably low fees. The ETF has an expense ratio (cost of managing the ETF) of 0.09%, which makes it an attractive investment.
Remarkably, SPY has delivered an average annualized return of 12.1% in the past decade, ending in March 2023. Moreover, SPY ETF stock pays a 1.56% annual dividend yield, which enhances investors’ returns over the long run.
Is SPY ETF Stock a Buy or Sell?
It is worth mentioning that as per 6,118 analysts providing ratings on SPY’s 505 holdings, the ETF is a Moderate Buy and the average price target of $472.75 implies a 14.2% upside. Further, 59.04% of ratings are Buys, 35.44% are Holds, and 5.52% are Sells.
Apart from the agreement among experts, TipRanks’ easy-to-read technical summary signals indicate that SPY ETF stock is a Buy at current levels.
Additionally, the weighted average Smart Score of the SPDR S&P 500 ETF is eight, implying it is more likely to beat the broader market averages. It is worth highlighting that more than 50% of the holdings have a minimum Smart Score of eight.
While most of the ETF’s holdings witnessed strong returns over the past year, there remain a few outperformers, having gained over 60%. Importantly, analysts see further upside potential in these stocks. Here are the 10 best-performing stocks in the SPY ETF:
- Axon Enterprise, Inc. (AXON)
- Fair Isaac Corporation (FICO)
- Netflix, Inc. (NFLX)
- Nvidia Corporation (NVDA)
- Las Vegas Sands (LVS)
- General Electric (GE)
- Lamb Weston Holdings (LW)
- Wynn Resorts Limited (WYNN)
- Boeing Company (BA)
- Chipotle Mexican Grill (CMG)
