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The world’s largest and the ultra-popular large cap ETF, SPDR S&P 500 ETF Trust SPY, has been enjoying its strong asset accumulation on the completion of its 25th anniversary. This is because it has become the first ETF with $300 billion in AUM. Though SPY’s inception date is Jan 22, 1993, it officially debuted on the American Stock Exchange on Jan 29, 1993 (read: Amazing ETF Strategies for Skyrocketing Markets).
Inside The ETF
SPY tracks the S&P 500 index and holds 505 stocks in its basket, with each security holding no more than 3.62%. This suggests a nice balance across each security and prevents heavy concentration.
About one-fourth of the portfolio is tilted toward the information technology sector, which has fully emerged from the burst of the dot-com bubble and is flying higher in the current bullish market. Moreover, financials, health care, consumer discretionary and industrials, each of which accounts for a double-digit exposure, are also performing remarkably well.
The ETF charges 9 bps in fees per year from investors and trades in heavy volume of 71.6 million shares a day on average. This ensures higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors (see: all the Large Cap ETFs here).
Factors Driving SPY
The U.S. stock market is in the midst of the second-longest bull run in history. Encouraging domestic and international fundamentals as well as better-than-expected corporate earnings are the major catalysts. This, coupled with Trump’s pro-growth agenda aimed at accelerating economic growth, reducing regulation, increasing spending, slashing taxes, and boosting jobs and corporate profits, are bolstering optimism in the economy.
Since Trump’s win, the stock market rally has been the fourth largest since 1936, according to Goldman Sachs. Per Sam Stovall of CFRA Research, the S&P 500 rally during Trump’s first year is the third best since World War II, behind only President George H. W. Bush and President John F. Kennedy (read: Trump's First Year in Office: 5 Must-See ETF Charts).
Further, a combination of other factors like rise in oil prices, a weak dollar and rounds of upbeat global economic data have bolstered the appetite for riskier assets in recent months. Good news flowing despite the global trade fears, political instability in Washington and geopolitical tension.
As a result, SPY generated more than 545% returns over the past 25 years and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered astounding returns during this time period, a few were the real stars. Below, we have highlighted the 25 best-performing stocks in the ETF over the past 25 years:
Best Performing Stocks of SPY
Amazon.com, Inc. (AMZN - Free Report) : This Zacks Rank #3 e-commerce giant has soared about 93,373% over the past 25 years. The trend is likely to continue this year as well given its earnings growth rate of 95.55% and the placement of the Zacks industry it belongs to at top 38%.
Monster Beverage MNST: This Zacks Rank #2 (Buy) beverage stock has jumped 77,764% and has an earnings growth rate of 27.03% for this year. Though it belongs to a bottom-ranked Zacks industry (bottom 26%), MNST has a strong Growth Score of B.
Biogen Inc. (BIIB - Free Report) : This Zacks Rank #3 leading biopharmaceutical company skyrocketed 31,426% over the 25-year period and has a solid Value, Growth and Momentum Score of B, B, and A, respectively. Biogen is expected to generate earnings growth of 12.1% for this year though it falls under a bottom-ranked Zacks industry (bottom 26%) (read: M&A Waves Pushing Biotech ETFs Higher).
Cognizant Technology Solutions Corporation Class A (CTSH - Free Report) : This Zacks Rank #3 custom software development company climbed 31,110% and belongs to a top-ranked Zacks industry (top 43%). The company is expected to see earnings growth of 17.45% this year.
Celgene Corporation CELG">CELG: This biopharma company gained 20,090% and looks to generate earnings growth of 16% this year. Though CELG has a Zacks Rank #4 (Sell) and belongs to a bottom-ranked Zacks industry (bottom 26%), its VGM Score of B makes it an attractive play.
Amphenol Corporation Class A (APH - Free Report) : This Zacks Rank #3 company is the leader in high growth areas of the interconnect market expecting earnings growth of 11.22% for this year. It delivered returns of 19,043% in the past 25 years and falls under a top-ranked Zacks industry (top 43%).
Express Scripts Holding Company : This biopharma company gained 16,489% and has an earnings growth rate projection of 20.47%. It is a triple play stock with a Zacks Rank #3 and belonging to top-ranked Zacks industry (top 40%).
Gilead Sciences (GILD - Free Report) : This biopharma company gained 15,752% but is expected to show an earnings decline of 23.49% this year. A Zacks Rank #4 (Sell) and a bottom-ranked Zacks industry placement (bottom 26%) are somewhat offset by a solid Value Score of A.
Cooper Companies Inc. COO: This Zacks Rank #3 medical device company was up 14,449% in the past 25 years and belongs to a top-ranked Zacks industry (top 30%). Its earnings are expected to grow 18.66% this year.
Time Warner Inc. TWX: This Zacks Rank #3 media and entertainment conglomerate company has gained 13,972% and expects earnings growth of 6.02% for this year. Though the stock belongs to a bottom-ranked Zacks industry (bottom 28%), its Value Score of B makes it a good play.
Ross Stores Inc. ROST: This Zacks Rank #3 discount store jumped 12,260% in the past 25 years and has an expected earnings growth of 16.25% for this year. It falls under a top-ranked Zacks industry (top 20%).
ResMed Inc. RMD: Shares of RMD were up 10,865% in the past 25 years. The stock carries a Zacks Rank #2 and expects earnings growth of 8.44% for this fiscal year (ending June 2018). However, it belongs to a bottom-ranked Zacks industry (bottom 33%).
Microchip Technology Inc. MCHP: This Zacks Rank #3 semiconductor firm climbed 10,289% and has an expected earnings growth of 7.61% for this fiscal year (ending Mar 2019). However, it belongs to a bottom-ranked Zacks industry (bottom 30%).
Constellation Brands Inc. Class A STZ: This leading producer and marketer of beverage alcohol brands surged 9978% and has a Zacks Rank #2. It has an expected earnings growth rate of 14.17% for the fiscal year (ending February 2019) and belongs to top-ranked Zacks industry (top 17%) (read: Strong Holiday Retail Sales: 3 ETF & Stock Picks).
Starbucks (SBUX - Free Report) : This Zacks Rank #3 restaurant service provider gained 9,541% and has an expected earnings growth of 16.50% for the fiscal year (ending September 2018). It falls under a top-ranked Zacks industry (top 39%).
O'Reilly Automotive Inc. ORLY: This Zacks Rank #3 auto parts retailer has gained 9,082% over the past 25 years and has an expected earnings growth rate of 17.52% for this year. It also falls under a top-ranked Zacks industry (top 17%).
Skyworks Solutions Inc. SWKS: This proprietary semiconductor company gained 8,889% and has an expected earnings growth of 10.85% for the fiscal year ending September 2018. Though SWKS has a Zacks Rank #4 (Sell) and belongs to a bottom-ranked Zacks industry (bottom 7%), it carries a solid Value Score of B and a Growth Score of A.
IDEXX Laboratories Inc. IDXX: This diagnostic firm jumped 8,768% and looks to generate 16.01% in earnings this year. The stock has a Zacks Rank #2 but falls under bottom-ranked Zacks industry (bottom 39%).
Dollar Tree Inc. (DLTR - Free Report) : This Zacks Rank #1 (Strong Buy) discount store retailer is expected to see earning growth of 17.49% for the fiscal year (ending January 2019). The stock gained 7,689% and belongs to a top-ranked Zacks industry (ttop 20%). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe Systems ADBE: This Zacks Rank #3 software company has gained 7,660% over the past 25 years and has an expected earnings growth rate of 41.76% for the fiscal year (ending Nov 2018). However, it belongs to a bottom-ranked Zacks industry (bottom 34%). Then again, a Growth Score of B looks attractive.
Activision Blizzard : This Zacks Rank #3 gaming consoles provider has returned 7,467% in the past 25 years and sees an expected earnings growth of 14.70% for this year. Though it has a solid Growth Score of B, it falls under a bottom-ranked Zacks industry (bottom 14%).
Intuit Inc. INTU: This stock also belongs to a bottom-ranked Zacks industry (bottom 34%) but carries a Zacks Rank #2. It has an estimated earnings growth of 14.97 for the fiscal year (ending August 2018) and saw an upsurge of 7,336% in its share price.
QUALCOMM (QCOM - Free Report) : This Zacks Rank #3 wireless technologies leader gained 7,334% but is likely to see earnings decline of 16.12% for the fiscal year (ending September 2018). Further, it falls under a bottom-ranked Zacks industry (bottom 33%). The stock nevertheless has a Value Score of B, which makes it worth looking at (read: Value Investing Set to Shine on Tax Reform: 5 Cheap ETFs).
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25 Stocks Powering the $300B SPY ETF for 25 Years
The world’s largest and the ultra-popular large cap ETF, SPDR S&P 500 ETF Trust SPY, has been enjoying its strong asset accumulation on the completion of its 25th anniversary. This is because it has become the first ETF with $300 billion in AUM. Though SPY’s inception date is Jan 22, 1993, it officially debuted on the American Stock Exchange on Jan 29, 1993 (read: Amazing ETF Strategies for Skyrocketing Markets).
Inside The ETF
SPY tracks the S&P 500 index and holds 505 stocks in its basket, with each security holding no more than 3.62%. This suggests a nice balance across each security and prevents heavy concentration.
About one-fourth of the portfolio is tilted toward the information technology sector, which has fully emerged from the burst of the dot-com bubble and is flying higher in the current bullish market. Moreover, financials, health care, consumer discretionary and industrials, each of which accounts for a double-digit exposure, are also performing remarkably well.
The ETF charges 9 bps in fees per year from investors and trades in heavy volume of 71.6 million shares a day on average. This ensures higher liquidity with a tight bid/ask spread, leading to lower trading costs for investors (see: all the Large Cap ETFs here).
Factors Driving SPY
The U.S. stock market is in the midst of the second-longest bull run in history. Encouraging domestic and international fundamentals as well as better-than-expected corporate earnings are the major catalysts. This, coupled with Trump’s pro-growth agenda aimed at accelerating economic growth, reducing regulation, increasing spending, slashing taxes, and boosting jobs and corporate profits, are bolstering optimism in the economy.
Since Trump’s win, the stock market rally has been the fourth largest since 1936, according to Goldman Sachs. Per Sam Stovall of CFRA Research, the S&P 500 rally during Trump’s first year is the third best since World War II, behind only President George H. W. Bush and President John F. Kennedy (read: Trump's First Year in Office: 5 Must-See ETF Charts).
Further, a combination of other factors like rise in oil prices, a weak dollar and rounds of upbeat global economic data have bolstered the appetite for riskier assets in recent months. Good news flowing despite the global trade fears, political instability in Washington and geopolitical tension.
As a result, SPY generated more than 545% returns over the past 25 years and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered astounding returns during this time period, a few were the real stars. Below, we have highlighted the 25 best-performing stocks in the ETF over the past 25 years:
Best Performing Stocks of SPY
Amazon.com, Inc. (AMZN - Free Report) : This Zacks Rank #3 e-commerce giant has soared about 93,373% over the past 25 years. The trend is likely to continue this year as well given its earnings growth rate of 95.55% and the placement of the Zacks industry it belongs to at top 38%.
Monster Beverage MNST: This Zacks Rank #2 (Buy) beverage stock has jumped 77,764% and has an earnings growth rate of 27.03% for this year. Though it belongs to a bottom-ranked Zacks industry (bottom 26%), MNST has a strong Growth Score of B.
Biogen Inc. (BIIB - Free Report) : This Zacks Rank #3 leading biopharmaceutical company skyrocketed 31,426% over the 25-year period and has a solid Value, Growth and Momentum Score of B, B, and A, respectively. Biogen is expected to generate earnings growth of 12.1% for this year though it falls under a bottom-ranked Zacks industry (bottom 26%) (read: M&A Waves Pushing Biotech ETFs Higher).
Cognizant Technology Solutions Corporation Class A (CTSH - Free Report) : This Zacks Rank #3 custom software development company climbed 31,110% and belongs to a top-ranked Zacks industry (top 43%). The company is expected to see earnings growth of 17.45% this year.
Netflix (NFLX - Free Report) : The world’s largest video streaming company, with a Zacks Rank #3, surged 27,379% and has a massive earnings growth rate of 113.6% for this year. Additionally, the stock belongs to a top-ranked Zacks industry (top 42%) (read: Netflix Tops $100 Billion on Subscriber Surge: ETFs to Buy).
Celgene Corporation CELG">CELG: This biopharma company gained 20,090% and looks to generate earnings growth of 16% this year. Though CELG has a Zacks Rank #4 (Sell) and belongs to a bottom-ranked Zacks industry (bottom 26%), its VGM Score of B makes it an attractive play.
Amphenol Corporation Class A (APH - Free Report) : This Zacks Rank #3 company is the leader in high growth areas of the interconnect market expecting earnings growth of 11.22% for this year. It delivered returns of 19,043% in the past 25 years and falls under a top-ranked Zacks industry (top 43%).
Express Scripts Holding Company : This biopharma company gained 16,489% and has an earnings growth rate projection of 20.47%. It is a triple play stock with a Zacks Rank #3 and belonging to top-ranked Zacks industry (top 40%).
Gilead Sciences (GILD - Free Report) : This biopharma company gained 15,752% but is expected to show an earnings decline of 23.49% this year. A Zacks Rank #4 (Sell) and a bottom-ranked Zacks industry placement (bottom 26%) are somewhat offset by a solid Value Score of A.
NVIDIA (NVDA - Free Report) : This graphic chipmaker soared 15,271% and carries a Zacks Rank #2 (Buy). It is expected to generate massive earnings growth of 63.04% this year and belongs to a top-ranked Zacks industry (top 8%) (read: Will Chip ETFs Continue Their Hot Streak as Q4 Unfolds?).
Cooper Companies Inc. COO: This Zacks Rank #3 medical device company was up 14,449% in the past 25 years and belongs to a top-ranked Zacks industry (top 30%). Its earnings are expected to grow 18.66% this year.
Time Warner Inc. TWX: This Zacks Rank #3 media and entertainment conglomerate company has gained 13,972% and expects earnings growth of 6.02% for this year. Though the stock belongs to a bottom-ranked Zacks industry (bottom 28%), its Value Score of B makes it a good play.
Ross Stores Inc. ROST: This Zacks Rank #3 discount store jumped 12,260% in the past 25 years and has an expected earnings growth of 16.25% for this year. It falls under a top-ranked Zacks industry (top 20%).
ResMed Inc. RMD: Shares of RMD were up 10,865% in the past 25 years. The stock carries a Zacks Rank #2 and expects earnings growth of 8.44% for this fiscal year (ending June 2018). However, it belongs to a bottom-ranked Zacks industry (bottom 33%).
Microchip Technology Inc. MCHP: This Zacks Rank #3 semiconductor firm climbed 10,289% and has an expected earnings growth of 7.61% for this fiscal year (ending Mar 2019). However, it belongs to a bottom-ranked Zacks industry (bottom 30%).
Constellation Brands Inc. Class A STZ: This leading producer and marketer of beverage alcohol brands surged 9978% and has a Zacks Rank #2. It has an expected earnings growth rate of 14.17% for the fiscal year (ending February 2019) and belongs to top-ranked Zacks industry (top 17%) (read: Strong Holiday Retail Sales: 3 ETF & Stock Picks).
Starbucks (SBUX - Free Report) : This Zacks Rank #3 restaurant service provider gained 9,541% and has an expected earnings growth of 16.50% for the fiscal year (ending September 2018). It falls under a top-ranked Zacks industry (top 39%).
O'Reilly Automotive Inc. ORLY: This Zacks Rank #3 auto parts retailer has gained 9,082% over the past 25 years and has an expected earnings growth rate of 17.52% for this year. It also falls under a top-ranked Zacks industry (top 17%).
Skyworks Solutions Inc. SWKS: This proprietary semiconductor company gained 8,889% and has an expected earnings growth of 10.85% for the fiscal year ending September 2018. Though SWKS has a Zacks Rank #4 (Sell) and belongs to a bottom-ranked Zacks industry (bottom 7%), it carries a solid Value Score of B and a Growth Score of A.
IDEXX Laboratories Inc. IDXX: This diagnostic firm jumped 8,768% and looks to generate 16.01% in earnings this year. The stock has a Zacks Rank #2 but falls under bottom-ranked Zacks industry (bottom 39%).
Dollar Tree Inc. (DLTR - Free Report) : This Zacks Rank #1 (Strong Buy) discount store retailer is expected to see earning growth of 17.49% for the fiscal year (ending January 2019). The stock gained 7,689% and belongs to a top-ranked Zacks industry (ttop 20%). You can see the complete list of today’s Zacks #1 Rank stocks here.
Adobe Systems ADBE: This Zacks Rank #3 software company has gained 7,660% over the past 25 years and has an expected earnings growth rate of 41.76% for the fiscal year (ending Nov 2018). However, it belongs to a bottom-ranked Zacks industry (bottom 34%). Then again, a Growth Score of B looks attractive.
Activision Blizzard : This Zacks Rank #3 gaming consoles provider has returned 7,467% in the past 25 years and sees an expected earnings growth of 14.70% for this year. Though it has a solid Growth Score of B, it falls under a bottom-ranked Zacks industry (bottom 14%).
Intuit Inc. INTU: This stock also belongs to a bottom-ranked Zacks industry (bottom 34%) but carries a Zacks Rank #2. It has an estimated earnings growth of 14.97 for the fiscal year (ending August 2018) and saw an upsurge of 7,336% in its share price.
QUALCOMM (QCOM - Free Report) : This Zacks Rank #3 wireless technologies leader gained 7,334% but is likely to see earnings decline of 16.12% for the fiscal year (ending September 2018). Further, it falls under a bottom-ranked Zacks industry (bottom 33%). The stock nevertheless has a Value Score of B, which makes it worth looking at (read: Value Investing Set to Shine on Tax Reform: 5 Cheap ETFs).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>