10 Best Performing Stocks Of S&P 500 ETF

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).

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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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