SPDR S&P 500 ETF TrustNYSE American: SPY

The 2024 trends and outlook for 2025 are reasons for the market to show some holiday cheer and rally through the year's end. Not only is the S&P 500 NYSEARCA: SPY in an earnings-driven uptrend but the stage is set for tailwinds to develop next year and sustain the trend into 2026.

Post-election rallies have heightened SPY's valuation risks, necessitating caution and consideration of alternative investments. The underlying valuation is at historically high levels, either in terms of the Shiller CAPE ratio or relative to risk-free rates. Alternative ideas include REITs and dividend-focused ETFs (such as SCHD and NOBL).

Hold the SPDR S&P 500 ETF Trust due to Trump's victory and a favorable corporate tax environment, but the S&P 500 is expensive by 19 out of 20 metrics. Trump's policies, including potential tax cuts and tariffs, could boost corporate profits short-term but raise long-term inflation concerns. Despite a positive short-term outlook, the stretched valuation of the S&P 500 warrants caution and patience for better buying opportunities.

You should aim for a diversified portfolio, but instead of going as broadly as possible, it pays to use certain index ETFs to focus your investment.

This investment is part of Buffett's portfolio.

The SPDR S&P 500 ETF (SPY) was launched on 01/29/1993, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

SPDR S&P 500 ETF Trust crosses $600 billion in AUM -a first for any ETF. Let's delve into its success story.

It's a great day to be an investor in SPY, the SPDR S&P 500 ETF Trust.  As of market close on Oct. 15, 2024, SPY became the world's first ETF to surpass $600 billion in assets under management.

Time is on your side with this Buffett-owned exchange-traded fund.