ETFs
3 Large-Cap ETFs Positioned for Major Gains
Large-cap ETFs are considered a good investment because they offer stability and reliability due to the established nature of the large companies they include. Additionally, these ETFs often include companies that pay dividends and generate income.
To this end, investors might consider investing in quality large-cap ETFs such as the Vanguard S&P 500 ETF (VOO), iShares Core S&P 500 ETF (IVV) and SPDR S&P 500 ETF Trust (TO SPY). Before we dig deeper into these ETFs, let’s explain why large-cap blended ETFs could be safe investments.
US economy sees slower GDP growth in first quarter 1.6%with moderating consumer spending, inflation and a growing trade deficit affecting economic growth.
Trade tensions Tensions between the United States and China are causing market volatility and loss of investor confidence, with the IMF calling for open trade policies and cooperation to resolve disputes. Washington’s imposition of new tariffs is raising concerns about supply chain disruptions and retaliatory measures, impacting global economic output.
Therefore, investing in large-cap ETFs could be a smart move in the current economic climate. These ETFs offer diversification, stability and protection against inflation and market volatility. They provide access to the long-term growth potential of large-cap companies without the need to select individual stocks, reducing risk compared to owning single large-cap stocks.
Given these favorable trends, let us evaluate the three Large-Cap Blended ETFs choice, starting with number three.
ETF #3: Vanguard S&P 500 ETF (VOO)
VOO is an exchange-traded fund launched and managed by The Vanguard Group, Inc. The fund invests in public securities markets in the United States. It invests in stocks of companies operating in diversified industries, specifically targeting growth and value stocks of large-cap companies. VOO seeks to track the performance of the S&P 500 Index using the full replication technique.
With $456.30 billion in assets under management, VOO’s largest holding is Microsoft Corp.MSFT), with a weighting of 6.84%, followed by Apple Inc. (AAPL), with a weighting of 5.85%, and NVIDIA Corporation (NVDA), with 5.05%. It has a total of 504 titles.
VOO has a spending rate of 0.03%, lower than the category average of 0.37%. VOO’s net inflows stood at $41.68 billion over the past six months and $71.20 billion over the past year. It currently has a NIV of $483.34.
The ETF pays an annual dividend of $6.41, yielding 1.33% on the current price. Its four-year average dividend yield is 1.51%. Its dividend payouts have grown at a CAGR of 6% over the past three years and 4.7% over the past five years.
VOO has gained 28% over the past year and 18.8% over the past nine months to close the latest trading session at $483.44.
the VOO POWR Ratings reflect these promising prospects. The ETF’s overall A rating equates to a Strong Buy in our proprietary rating system. POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.
VOO has an A rating for Buy & Hold and Trade and a B for Peer. It is ranked #3 out of 280 ETFs in Category A. Large-Cap Blended ETFs category. Click here to access all of VOO’s POWR reviews.
ETF #2: iShares Core S&P 500 ETF (IVV)
IVV is an ETF launched by BlackRock, Inc. and managed by BlackRock Fund Advisors. It is one of the largest ETFs in the world and provides exposure to one of the world’s best-known and most followed stock indices. This ETF tracks the S&P 500 Index, which includes many large, well-known U.S. companies.
With $465.38 billion in assets under management, the fund’s top holding is MSFT, with a weighting of 7.16%, followed by AAPL, with a weighting of 6.21%, and NVDA, with 5.25%. %. It has a total of 504 titles.
IVV has an expense ratio of 0.03%, lower than the category average of 0.37%. It currently has a net asset value of $528.46. Its net inflows stood at $24.99 billion over the past six months.
The fund’s annual dividend of $6.92 yields 1.31% on the current share price. Its average return over four years is 1.53%. Its dividend payouts have grown at a CAGR of 6.7% over the past three years and 4.5% over the past five years.
IVV has gained 19.6% over the past nine months and 28% over the past year to close the latest trading session at $532.39.
IVV’s strong outlook is reflected in its POWR Ratings. The ETF has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
It has an A rating for Buy & Hold and Trade and a B for Peer. He is ranked No. 2 in the same group. To access all POWR reviews for IVV, Click here.
ETF #1: SPDR S&P 500 ETF Trust (TO SPY)
SPY is an ETF fund launched and managed by State Street Global Advisors, Inc. The fund aims to provide pre-expense investment results that match the price and yield performance of the S&P 500 Index. It follows a strategy of replication and provides exposure to large-cap US stocks.
With $535.28 billion in assets under management, SPY’s top holding is MSFT, with a weighting of 7.13%, followed by AAPL, with a weighting of 6.24%, and NVDA, with 5.27%. %. It has a total of 504 titles.
SPY has an expense ratio of 0.09%, lower than the category average of 0.37%. SPY’s net inflows were $31.21 billion over the past six months and $35.76 billion over the past year. It currently has a net asset value of $525.83.
The ETF pays an annual dividend of $6.72, yielding 1.28% on the current price. Its four-year average dividend yield is 1.47%. Its dividend payouts have grown at a CAGR of 6.5% over the past three years and 5.1% over the past five years.
SPY has gained 27.9% over the past year and 16.4% over the past six months to close the latest trading session at $529.50.
SPY’s POWR Ratings reflect its bright outlook. The ETF’s overall A rating equates to a Strong Buy in our proprietary rating system.
SPY has an A rating for Buy & Hold and Trade and a B for Peer. Within the group of Large Cap Blend ETFs, it occupies the first place. To get full POWR Ratings from SPY, Click here.
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VOO stock was trading at $487.09 per share on Friday afternoon, up $3.65 (+0.76%). Year to date, VOO has gained 11.87%, compared to an 11.83% rise in the benchmark S&P 500 during the same period.
About the Author: Abhishek Bhuyan
Abhishek embarked on his professional journey as a financial journalist due to his keen interest in discerning the fundamental factors that influence the future performance of financial instruments. More…