In the recent series of record highs, the S&P 500 crossed the 3,100 level for the first time ever. With this, the benchmark has increased 23.5% this year. Most of the rally was buoyed by trade deal optimism and stronger-than-expected corporate earnings. The Fed’s rate cut for the third time this year has also bolstered the risk appetite of investors.

A slew of mergers & acquisitions and rising oil price have added to this upside. The trend is likely to continue though bouts of volatility and instability have 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 25.4% 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 505 stocks in its basket with each security holding not more than 4.4%. 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 communication services being the top four, with double-digit allocation each. It has AUM of $280.1 billion and charges 9 bps in fees per year from investors. The product trades in heavy volume of around 67.4 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 70%. Below, we have highlighted the 10 best-performing stocks in the ETF so far this year:

Best-Performing Stocks of SPY

Advanced Micro Devices Inc. (AMD - Free Report): The provider of microprocessors and servers with a Zacks Rank #3 (Hold) has surged about 99% and has a massive earnings growth rate of 30.43% for this year. Additionally, the stock belongs to a favorable Zacks industry (placed at the top 13% of 250+ industries).

Lam Research Corporation (LRCX - Free Report): The wafer fabrication equipment supplier has climbed more than 98% and carries a Zacks Rank #2 (Buy). It has an estimated earnings growth rate of 3.37% for the fiscal year (ending June 2020) and belongs to a favorable Zacks industry (placed at the top 7%).

KLA-Tencor Corporation (KLAC - Free Report): This Zacks #2 Ranked company is an original equipment manufacturer (OEM) of process diagnostics and control (PDC) equipment. It has soared nearly 95% and has an earnings growth rate of 16.78% for the fiscal year (ending June 2020). The stock belongs to a favorable Zacks industry (placed at the top 35%).

Xerox Corporation (XRX - Free Report): This print technology and intelligent work solutions provider has jumped 89.5% and belongs to an unfavorable Zacks industry (placed at the bottom 24% of 250+ industries). The company is expected to see earnings growth of 17.05% for this year and has a Zacks Rank #2.

Coty Inc. (COTY - Free Report): This beauty product company has been up more than 89% so far this year and has an earnings growth rate projection of 3.08% for the full fiscal (ending June 2020). It belongs to a favorable Zacks industry (placed at the top 27%).

Chipotle Mexican Grill Inc. (CMG - Free Report): This restaurant has gained more than 75% so far this year and boasts an impressive earnings growth expectation of 51.66% for this year. It falls under a favorable Zacks industry (placed at the top 32%) and carries a Zacks Rank #2.

Arconic Inc. (ARNC - Free Report): This Zacks Rank #2 company is a global leader in multi-material, precision-engineered products and solutions for a variety of industries. It delivered returns of about 75% in the year-to-date time frame and belongs to a favorable Zacks industry (placed at the top 30%). Its earnings are expected to grow 54.4% this year.

MarketAxess Holdings Inc. (MKTX - Free Report): It is the operator of one of the leading platforms for the electronic trading of corporate bonds and certain other types of fixed-income securities. The stock is up 73.2% so far this year and sports a Zacks Rank #1 (Strong Buy). Its earnings are expected to grow 18.6% this year and MarketAxess falls under favorable Zacks industry (top 4%).

Keysight Technologies Inc. (KEYS - Free Report): This Zacks #3 Ranked company is a provider of electronic design and test instrumentation systems. It has soared 72.5% and has an earnings growth rate of 6.92% for the full fiscal (ending October 2020). The stock belongs to a favorable Zacks industry (top 15%).

Copart Inc. (CPRT - Free Report): This Zacks Rank #2 online auction provider has surged more than 72%. It has an earnings growth rate of 18.67% for this fiscal year (ending July 2020) and belongs to a favorable Zacks industry (top 42%).