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10 Stocks Powering S&P 500 ETF in the 10-Year Bull Run
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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 (read: 10 Top-Ranked ETFs Leading the 10-Year Bull Run).
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 (read: S&P 500 Back to Above 2,800: SPY ETF Versus IVV).
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:
Best Performing Stocks of SPY
Netflix (NFLX - Free Report) : The world’s largest video streaming company, with a Zacks Rank #3, surged 6235% and has a massive earnings growth rate of 51.12% for this year. Additionally, the stock belongs to a top-ranked Zacks industry (top 27%).
ABIOMED Inc. : A provider of mechanical circulatory support devices climbed 5540% and belongs to a top-ranked Zacks industry (top 27%). The company is expected to see earnings growth of 106.12% this fiscal (ending March 2019) and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ulta Beauty Inc. (ULTA - Free Report) : This Zacks Rank #3 beauty retailer has jumped 5441% and has an earnings growth rate of 17.06% for fiscal (ending January 2020). Though it belongs to a bottom-ranked Zacks industry (bottom 41%), ULTA has a top Growth Score of A (read: 4 Sector ETFs That Crushed S&P 500 in Decade-Old Bull Run).
United Rentals Inc. (URI - Free Report) : This rental equipment company skyrocketed 3543% and has an earnings growth rate projection of 18.76%. It is a triple play stock with a Zacks Rank #3 but belongs to a bottom-ranked Zacks industry (bottom 20%).
Incyte Corporation (INCY - Free Report) : This biopharma company has gained 3408% in the past decade. It has a massive earnings growth projection of 102.88% for this year. It falls under the top-ranked Zacks industry (top 29%) but has a dismal Zacks Rank #5 (Strong Sell).
Align Technology Inc. (ALGN - Free Report) : This Zacks Rank #3 global medical device company soared 3205% over the past decade and has a solid Growth and Momentum Score of A each. Align Technology is expected to generate earnings growth of 3.25% for this year and falls under a top-ranked Zacks industry (top 20%) (see: all the Large Cap ETFs here).
Regeneron Pharmaceuticals Inc. (REGN - Free Report) : This biopharma company have skyrocketed 2877% in the same time frame. The company looks to generate a modest 1.75% in earnings growth this year. The stock has a Zacks Rank #3 and a top Growth and Momentum Score of A each. Additionally, it falls under top-ranked Zacks industry (top 29%).
WellCare Health Plans Inc. : This Zacks Rank #2 company provides government-sponsored managed care services and has an expected earnings growth rate of 23.21% for this year. It delivered returns of 2746% in the past decade and falls under a top-ranked Zacks industry (top 16%).
Booking Holdings Inc. (BKNG - Free Report) : Shares of BKNG have risen 2117% in the past decade. The stock carries a Zacks Rank #3 and a solid Growth and Momentum Score of B and A, respectively. However, it belongs to a bottom-ranked Zacks industry (bottom 25%).
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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 (read: 10 Top-Ranked ETFs Leading the 10-Year Bull Run).
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 (read: S&P 500 Back to Above 2,800: SPY ETF Versus IVV).
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:
Best Performing Stocks of SPY
Netflix (NFLX - Free Report) : The world’s largest video streaming company, with a Zacks Rank #3, surged 6235% and has a massive earnings growth rate of 51.12% for this year. Additionally, the stock belongs to a top-ranked Zacks industry (top 27%).
ABIOMED Inc. : A provider of mechanical circulatory support devices climbed 5540% and belongs to a top-ranked Zacks industry (top 27%). The company is expected to see earnings growth of 106.12% this fiscal (ending March 2019) and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ulta Beauty Inc. (ULTA - Free Report) : This Zacks Rank #3 beauty retailer has jumped 5441% and has an earnings growth rate of 17.06% for fiscal (ending January 2020). Though it belongs to a bottom-ranked Zacks industry (bottom 41%), ULTA has a top Growth Score of A (read: 4 Sector ETFs That Crushed S&P 500 in Decade-Old Bull Run).
United Rentals Inc. (URI - Free Report) : This rental equipment company skyrocketed 3543% and has an earnings growth rate projection of 18.76%. It is a triple play stock with a Zacks Rank #3 but belongs to a bottom-ranked Zacks industry (bottom 20%).
Incyte Corporation (INCY - Free Report) : This biopharma company has gained 3408% in the past decade. It has a massive earnings growth projection of 102.88% for this year. It falls under the top-ranked Zacks industry (top 29%) but has a dismal Zacks Rank #5 (Strong Sell).
Align Technology Inc. (ALGN - Free Report) : This Zacks Rank #3 global medical device company soared 3205% over the past decade and has a solid Growth and Momentum Score of A each. Align Technology is expected to generate earnings growth of 3.25% for this year and falls under a top-ranked Zacks industry (top 20%) (see: all the Large Cap ETFs here).
Regeneron Pharmaceuticals Inc. (REGN - Free Report) : This biopharma company have skyrocketed 2877% in the same time frame. The company looks to generate a modest 1.75% in earnings growth this year. The stock has a Zacks Rank #3 and a top Growth and Momentum Score of A each. Additionally, it falls under top-ranked Zacks industry (top 29%).
WellCare Health Plans Inc. : This Zacks Rank #2 company provides government-sponsored managed care services and has an expected earnings growth rate of 23.21% for this year. It delivered returns of 2746% in the past decade and falls under a top-ranked Zacks industry (top 16%).
Amazon.com, Inc. (AMZN - Free Report) : This Zacks Rank #3 e-commerce giant has surged about 2335%. It has an earnings growth rate of 32.67% for this year but belongs to a bottom-ranked Zacks industry (bottom 25%). The stock also has a top Growth Score of A (read: Internet ETFs & Stocks Top Bull Market: Will the Rally Continue?).
Booking Holdings Inc. (BKNG - Free Report) : Shares of BKNG have risen 2117% in the past decade. The stock carries a Zacks Rank #3 and a solid Growth and Momentum Score of B and A, respectively. However, it belongs to a bottom-ranked Zacks industry (bottom 25%).
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 >>