5 Best Index Funds Popular Among Reddit Investors

2. SPDR S&P 500 ETF Trust (NYSEARCA:SPY)

Net Assets: $373.18 billion

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is an ETF that tracks the performance of the globally renowned S&P 500 Index. The ETF came into being in 1993 and has an annual gross expense ratio of 0.0945%.

The S&P 500 has staged a strong recovery from its lows in mid-June. This has been due to a strong Q2 2022 earnings season and an improvement in the macroeconomic outlook. July inflation came in below expectations, giving rise to the hope that the Federal Reserve will not be as hawkish with interest rate hikes. Observers now anticipate a rise of only 50 basis points during the next monetary policy meeting in September 2022. Meanwhile, the prior outlook was for a 0.75% interest rate hike. Any significant interest rate hike would dampen the growth outlook of the economy due to depressed demand.

The SPDR S&P 500 ETF Trust’s (NYSEARCA:SPY) dividend yield stands at 1.4% as of August 24. Furthermore, the fund’s estimated EPS growth for the next 3-to-5 years stands at 12.18%. Apple Inc (NASDAQ:AAPL) is the fund’s biggest holding, representing 7.49% of the portfolio value.