10 Stocks Of S&P 500 ETF Up More Than 60% This Year

The S&P 500 breaks the 3,000 level for the first time ever after the Fed indicated easy money policies in the cards. Fed Chair Jerome Powell stated that slower business investments across the United States and lingering global growth uncertainties might slowdown the domestic growth, thereby bolstering the outlook for a near-term rate cut. The index has risen 1,000 points in the last five years prior to which it reached 2,000 on Aug 26, 2014.

With this, the S&P 500 has increased 19.5% so far this year. Most of this rally was driven by the dual tailwinds of hopes of easing monetary policies and trade optimism. A slew of mergers & acquisitions and the rising oil price also added to this upside. The trend is likely to continue though bouts of volatility and instability kept crossing the bulls.

The proxy version, SPDR S&P 500 ETF Trust (SPY - Free Report), which tracks the S&P 500 Index has gained 20.6% so far this year. Let’s take a closer look at the fundamentals of SPY and the stocks behind this rally:

Inside The SPY

The ETF holds 504 stocks in its basket with each security holding not more than 4.23%. This suggests a nice balance across each security and prevents heavy concentration. The fund is widely spread across sectors with information technology, healthcare, financials and consumer discretionary being the top four with a double-digit allocation each. It has AUM of $276.4 billion and charges 9 bps in fees per year from investors. It trades in heavy volume of around 73.4 million shares a day on average, ensuring higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors.

SPY has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most stocks in the fund’s portfolio have delivered astounding returns in the year-to-date time frame, a few were the real stars, skyrocketing more than 60%. Below, we have highlighted the 10 best-performing stocks in the ETF so far this year:

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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