The SPDR S&P 500 ETF Trust (SPY) is an exchange-traded fund (ETF) that tracks the S&P 500 Index (SPX). With exposure to 500 large-cap U.S. stocks, the ETF is well diversified and reduces the overall risk. With its low expense ratio of 0.09%, SPY is cost-effective and attracts long-term investors. Moreover, technical indicators suggest that SPY ETF is a Buy, on a one-day timeframe, implying further upside from current levels.
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Analyzing SPY ETF’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, SPY ETF is on an upward trend. The ETF’s 50-day Exponential Moving Average (EMA) is 562.42, while its price is $594.20, implying a bullish signal. Further, its shorter duration EMA (20 days) also signals an uptrend.
Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a ETF’s price between the current price and the price from a specific number of periods ago. Typically, a ROC above zero confirms an uptrend. SPY currently has an ROC of 7.87, which signals a Buy.
Is SPY ETF a Good Buy?
Turning to Wall Street, SPY has a Moderate Buy consensus rating based on 415 Buys, 80 Holds, and nine Sells assigned in the last three months. At $652.19, the average SPY ETF price target implies a 10.76% upside potential.
