10 Stocks Powering S&P 500 ETF In The 10-Year Bull Run

The U.S. stock market bull overcame several challenges over the past decade and recently completed its tenth anniversary. The S&P 500 Index has quadrupled, rallying more than 300%, from the bear-market bottom of 676.53 on Mar 9, 2009 — representing the longest but not the strongest bull market in history. The index pulled in around $21 trillion during this longest bull market mainly driven by cheap money flows and lower interest rates.

Additionally, the United States emerged as a healthier economy withstanding the financial crisis and Great Recession. Record stock buybacks and all-time high dividends also led to a spike in the stock market. Tax reforms passed by President Donald Trump and stronger corporate earnings have boosted the longevity of the bulls lately amid global growth concerns and trade war.

The proxy version, SPDR S&P 500 ETF Trust (SPY - Free Report), which tracks the S&P 500 Index has climbed 260.7% over the past decade. 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 no more than 3.73%. 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 a double-digit allocation each. It charges 9 bps in fees per year from investors and trades in heavy volume of around 104.8 million shares a day on average. This ensures 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 of the stocks in the fund’s portfolio have delivered astounding returns during the decade, a few were the real stars, skyrocketing more than 2000%. Below, we have highlighted the 10 best-performing stocks in the ETF over the past decade:

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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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