We surveyed a group of over 500 investors on whether the SPY ETF (NASDAQ: SPY) will reach $500 by 2022.
The ExodusPoint Partners International Fund returned 0.36% for May, bringing its year-to-date return to 3.31% in a year that's been particularly challenging for most hedge funds, pushing many into the red. Macroeconomic factors continued to weigh on the market, resulting in significant intra-month volatility for May, although risk assets generally ended the month flat. Macro Read More
What Are ETFs?
ETFs track a sector, represent a commodity (like gold, oil or wheat) or sample a basket of stocks or bonds that meet a given criteria.
The SPY ETF tracks the S&P 500. Exchange-traded funds are popular with investors given they can help mitigate risk in your portfolio.
Tesla S&P Inclusion
Our team recently reported that in a worst-case scenario in which Tesla gives up all its gains from the past two years, it would represent about 90% downside for the stock.
At a 1.6% overall weighting for Tesla, that 90% downside would still only translate to a 1.44% decline for the S&P 500.
SPY ETF Forecast 2021
59% of Benzinga traders and investors told us the SPY ETF would reach $500 by the end of next year.
Traders and investors who participated in our study cited SPY will see strength given the belief the US economy will significantly recover in 2021 and tech stocks will out-perform markets in 2021.
As an index fund SPY is indeed tech-dependent- roughly one-third of represented companies in SPY are in the tech sector. Respondents to our study also believe consumer discretionary spending will increase in sympathy with an improving US economy in 2021, led by tech giants Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN).
Taking a look at SPY’s weighted average by market capitalization, the 3 FAANG companies represent about 17% of the ETF’s market cap as of publishing.
See Also: Blue Chip Stocks.
This survey was conducted by Benzinga in December 2020 and included the responses of a diverse population of adults 18 or older.
Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 500 adults.
Henry Khederian contributed to this report.