To The Moon

🌟🌟🌟SPYG $SPDR Portfolio S&P 500 Growth ETF(SPYG)$  seeks to provide investment results that track the total return performance of the S&P500 Growth Index.  SPYG is a low cost ETF  that comprises of stocks that exhibit the strongest growth characteristics based on 3 criteria.  They are sales growth, earnings change to price ratio and momentum.

It is not surprising that SPYG includes the Magnificent 7 - Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla in its basket of holdings.  These high performing tech stocks have accounted for more than half of the gains so far this year as they have benefited from intense investor focus on ways to play the AI boom.

In  addition to the Magnificent 7 stocks, Broadcom and Eli Lilly complete the Top 10 holdings.  Total number of holdings is 208.  The expense ratio is a low 0.04% which is among the lowest among competing ETFs.  Dividends are paid every 3 months.  The current dividend yield is 0.58%.  SPYG went ex dividend on December 23 2024.  The next dividend is due in March 2025.

Performance wise SPYG has been on a tear this year as it is up 40% year todate.  In 2023, SPYG has risen 37%.  But if we look back 5 years ago, SPYG is up 112% and 270% since its inception in August 25 2000.  SPYG has outperformed $SPDR S&P 500 ETF Trust(SPY)$  as SPY is up 25% year todate and 24% in 2023.

Nvidia $NVIDIA Corp(NVDA)$   is the Top holding of SPYG at 12.8% weightage  as it has benefited from the high demand for its specialised AI chips.  Even though its share price has  lost steam recently, Nvidia is still up 184% year todate.   In fact Nvidia has a whopping 90% of the global GPU market share currently. This dominance has been underpinned by Nvidia's flagship AI GPUs and its CUDA software which is the industry standard for AI development. 

$Apple(AAPL)$  is on the cusp of reaching USD 4 Trillion in market capitalisation with its current market capitalisation at USD 3.86 Trillion.   Apple reached its all time high last Thursday at USD 260.09 after Wedbush analyst Dan Ives raised his price target on Apple shares to a new Street High of USD 325, anticipating a golden era of growth for the Tech Giant and maintaining an Outperform rating. 

$Microsoft(MSFT)$  is one of the best positioned companies among the Magnificent 7 with its overlapping software, Cloud computing and AI opportunities.  However its  share price is only up 16% in comparison with other members of the Magnificent 7.  Therefore it has more  upside potential and could be undervalued.  Microsoft has invested almost USD 14 billion in OpenAI and is one of the front runners in Generative AI.  This is a subset of AI that uses Generative models to produce text, images, videos and other forms of data. 

$Tesla Motors(TSLA)$  share price is up 67%  since the November 5 Presidential election, adding some USD 555 billion to its market capitalisation.   Tesla is now up 73% year todate due to CEO Elon Musk's strong support for Donald Trump.  Tesla's shares reached its all time high of USD 488.54 recently. 

Elon Musk also said that Tesla plans to release a low cost Model Q that will launch in the first half of 2025 priced under USD 30,000 with Federal Tax credit or USD 37,500 without the tax credit.  In addition to Model Q, Tesla will launch Baby Y, a lower cost variant of Model Y in late 2025 alongside a larger Model Y variant. 

Another exciting project in the pipeline is Tesla Cyber self driving Robotaxi which was unveiled on October 2024.  With all these latest developments, it is not surprising that Tesla's share price has been on a strong upward momentum. 

These are just 4 of stocks that make up the holdings of SPYG.    There are many other stocks that have shown strong growth in 2024 that make up the basket of holdings in SPYG. 

Wall Street Analysts are bullish on SPYG with a Buy rating, Target price of USD 99.09, an upside potential of 10% according to 210 analysts surveyed by Tipranks. 

I like SPYG for its high octane growth potential and the wide diversification with 208 stocks.  No need to decide which growth stocks to buy as SPYG does the heavy lifting for me choosing the best growth stocks and weeding out the non performing ones.   There is no necessity to read company reports either. 

I have invested in SPYG since 2021 and love how far it has increased in capital growth.  I believe that SPYG still has lots of exponential growth ahead especially with the dawn of Artificial Intelligence which is  in its early stages of development. 

With SPYG I have maximum value at minimum cost!  That is my favourite way of investing. 

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