5 Top-Ranked Stocks in S&P 500 ETF Up More Than 50%
In a supercharged bull market, the S&P 500 Index touched a new high, recovering all the losses made toward the end of the last year. In fact, the index is up nearly 25% from a low reached on Christmas Eve, after having overcome all the hurdles including government shutdown, recession fears, global growth concerns, looming Brexit issues and an unresolved trade spat with China (read: U.S. Stocks Near Record High: Top-Ranked ETFs to Buy).
The renewed rally came on easing trade war fears, revival in oil prices and Fed’s dovish outlook. Additionally, signs of improving growth in China due to new measures and reforms, as well as steady albeit slowing growth in the U.S. economy, led to the spike. Further, the spate of better-than-expected earnings eased fears of a recession and bolstered optimism in the stock market. The upward trend is likely to continue in the months ahead.
Given the enthusiasm, investors are flocking to the ETF tracking the S&P 500 index - iShares Core S&P 500 ETF IVV. Let’s take a closer look at the fundamentals of IVV and its performance.
IVV in Focus
IVV has pulled in nearly $3.6 billion in capital so far this year, propelling its AUM to $177.2 billion. It holds 505 stocks in its basket, with each security holding less than 4% of the total assets. This suggests a nice balance across each security and prevents heavy concentration. However, the product is slightly tilted toward information technology sector with 21.7% share while health care, financials, communications and consumer discretionary account for a double-digit exposure each.
The ETF is the low cost choice in the space, charging 4 bps in fees per year from investors and trades in solid volume of 5.2 million shares a day on average. The fund has gained 17.6% in the year-to-date time frame and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Though most of the stocks in the fund’s portfolio have delivered impressive returns, a few were the real stars gaining more than 50% (read: 5 Top-Ranked ETFs & Stocks to Bloom in Spring).
Below, we have highlighted the five best-performing stocks having a top Zacks Rank #1 (Strong Buy) or 2 in the ETF with their respective positions in the fund’s basket:
Chipotle Mexican Grill Inc. CMG: This Zacks Rank #2 stock has surged 62.7% so far this year. It has seen solid earnings estimate revision of 59 cents for this year over the past three months and has an expected earnings growth rate of 38.6%. The stock, belonging to a bottom-ranked industry (in the bottom 34%), accounts for just 0.07% share in IVV.
Xilinx Inc. XLNX: This stock makes up for 0.14% allocation in the fund’s basket and has delivered incredible returns of 61% so far this year. The stock has seen solid earnings estimate revision of 29 cents over the past three months for the fiscal year (ending Mar 2020), indicating year-over-year earnings growth of 11.2%. Xilinx sports a Zacks Rank #1 and falls under the top-ranked industry (in the top 1%). You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy Corporation DVN: The stock has gained about 53.5% in the year-to-date time frame. It has seen solid earnings estimate revision of 49 cents over the past three months for this year with an expected growth rate of 33.3%. Devon Energy currently has a Zacks Rank #2 and belongs to a top-ranked industry Rank (in the top 38%). It makes up for 0.06% share in IVV (read: ETFs to Buy/Avoid on Higher Oil Prices).
Cadence Design Systems Inc. CDNS: This Zacks Rank #1 stock has surged more than 53% so far this year and has 0.08% exposure in the fund’s basket. It has seen strong earnings estimate revision of 10 cents over the past three months for this year and has an estimated growth rate of 9.63%. Cadence Design Systems belongs to a top-ranked industry Rank (in the top 7%).
MSCI Inc MSCI: This stock accounts for 0.08% of assets in the fund’s basket. It sports a Zacks Rank #1 and has gained 53.3% in the year-to-date time frame. MSCI has seen solid earnings estimate revision of 22 cents over the past three months for this year with an expected growth rate of 14.95%. It belongs to a top-ranked industry Rank (in the top 3%).
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MSCI Inc (MSCI): Free Stock Analysis Report
Cadence Design Systems, Inc. (CDNS): Free Stock Analysis Report
iShares Core S&P 500 ETF (IVV): ETF Research Reports
Devon Energy Corporation (DVN): Free Stock Analysis Report
Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
Xilinx, Inc. (XLNX): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.