SPY ETF Update: Moderate Buy Rating with 7.47% Upside Potential

The SPDR S&P 500 ETF Trust (SPY) is up 0.42% in the past 5 days and 7.12% year-to-date. TipRanks' ETF analyst consensus rates SPY as a Moderate Buy, with a price target of $672.58 implying an upside of over 7.47%. The ETF's five holdings with the highest upside potential are Loews, Centene, PG&E, Fair Isaac, and Molina Healthcare, while its five holdings with the greatest downside potential are Palantir Technologies, Coinbase Global, The Estée Lauder Companies, Super Micro Computer, and Ford Motor. The ETF's Smart Score is seven, indicating that it is likely to perform in line with the market.

The SPDR S&P 500 ETF Trust (SPY) has experienced significant growth in recent days and months, attracting investor attention. Over the past five days, SPY has risen by 0.42%, and year-to-date, it has appreciated by 7.12%. This performance has been driven by strong market conditions, particularly in the Large Cap Blend segment of the U.S. equity market.

SPY, launched on January 29, 1993, is a passively managed ETF sponsored by State Street Global Advisors. It aims to replicate the performance of the S&P 500 Index, which comprises 500 leading companies in major industries of the U.S. economy. The ETF has amassed assets of over $643.46 billion, making it one of the largest ETFs in the market [2].

The ETF's annual operating expenses are 0.09%, making it one of the least expensive products in the space. This low cost structure is a significant advantage for long-term investors. SPY has a 12-month trailing dividend yield of 1.15%, providing additional income for investors [2].

SPY's heaviest allocation is to the Information Technology sector, accounting for approximately 33.40% of its portfolio. Financials and Consumer Discretionary sectors follow closely, rounding out the top three. Microsoft Corp (MSFT), Nvidia Corp (NVDA), and Apple Inc (AAPL) are among the top holdings, with Microsoft accounting for about 6.86% of total assets [2].

TipRanks' ETF analyst consensus rates SPY as a Moderate Buy, with a price target of $672.58, implying an upside of over 7.47%. The ETF's Smart Score of seven indicates that it is likely to perform in line with the market. The five holdings with the highest upside potential are Loews, Centene, PG&E, Fair Isaac, and Molina Healthcare, while the five holdings with the greatest downside potential are Palantir Technologies, Coinbase Global, The Estée Lauder Companies, Super Micro Computer, and Ford Motor [1].

SPY's performance is a reflection of the broader market's resilience and growth. As of July 2, 2025, the ETF has added about 7.37% so far this year and is up about 12.77% in the last one year. Its five-year average return is 12.73%, underscoring its historical performance [2].

In conclusion, the SPDR S&P 500 ETF Trust (SPY) continues to be a popular choice among investors seeking broad exposure to the Large Cap Blend segment of the U.S. equity market. Its strong performance, low costs, and transparent holdings make it an attractive option for both retail and institutional investors.

References:
[1] https://www.etf.com/sections/daily-etf-flows/voo-attracts-12b-sp-500-hits-fresh-record
[2] https://finance.yahoo.com/news/spdr-p-500-etf-spy-102005479.html