The SPDR S&P 500 ETF Trust (SPY), a top ETF that closely follows the S&P 500 (SPX) index, consists of over 500 companies from different market sectors. The SPY ETF stock has advanced over 9% year-to-date, and the technical indicators indicate further upside potential.
According to TipRanks’ technical analysis tool, SPY ETF stock’s 50-Day EMA (exponential moving average) is 408.93, while its price is $414.65, making it a Buy. Further, the moving average convergence divergence (MACD) indicator also signals a Buy.
Meanwhile, its RSI (Relative Strength Index) is 48.55, implying a Neutral signal. At the same time, SPY’s price rate of change (ROC) of 1.47 points to a bullish trend.
In a nutshell, SPY is a Buy based on TipRanks’ easy-to-read technical summary signals (which combine the moving averages and the technical indicators into a single, summarized call).
Is SPY a Buy, Hold, or Sell?
SPY has a Moderate Buy analyst consensus rating on TipRanks, and the average price target of $470.15 implies 13.39% upside. Among the 6,174 analysts providing ratings on 505 holdings of SPY, 59.15% have given a Buy rating, 35.34% have assigned a Hold rating, and 5.51% have given a Sell rating.
Moreover, according to TipRanks’ Smart Score System, SPY has a smart score of eight, which indicates that the ETF could outperform the broader market over the long term.
Ending Thoughts
ETFs provide investors with a smart option to diversify risk by investing in a bunch of companies across sectors. Moreover, SPY gives investors a chance to hold some of the key stocks, including Apple (AAPL), Tesla (TSLA), JPMorgan Chase (JPM), and Merck & Company (MRK), among others. Lastly, the rock-bottom expense ratio of 0.09% makes SPY more attractive.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
