S&P 500's Best Q2 Ever: Stock & ETF Winners

The second quarter of 2020 can be attributed to a sturdy market rally despite coronavirus-led lockdowns in various parts of the globe. Since the market hit lows on Mar 23, the S&P 500 gained nearly 20% for the April through June quarter. The unprecedented stimulus measures by global central banks and governments pulled out the ailing markets from nadir.

The advance marked the index’s best overall quarter since 1998 and the best second quarter since its inception in 1957. Each of the S&P 500’s 11 sectors were in the green in the second quarter. The information technology and consumer discretionary sectors were clear winners. The consumer staples and utilities sectors lagged though amid the bull run.

Investors should note that by mid-second quarter, all 50 states of the United States reopened to some extent after lockdown. Rising hopes of a vaccine and some upbeat economic indicators added to the optimism. U.S. retail sales growth in May was the best on record as the coronavirus-led lockdown eased. May also reflected the largest one-month job gains.

Oil price has risen sharply after the historic collapse in April led by improving demand and supply dynamics. OPEC, Russia and allies agreed on Jun 6 to extend record oil production cuts until the end of July.

Against this backdrop, below we highlight a winning stocks and ETFs of the S&P 500 in the second quarter of 2020.

Stock Winners

Apache Corporation APA – Up 127.1%

The Zacks Rank #3 (Hold) company is one of the world's leading independent energy companies engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids. The stock has a favorable VGM Score of B.

The Gap Inc. GPS – Up 89.8%

The Zacks Rank #3 company is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It offers products for men, women and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix and Hill City brands.

PayPal Holdings Inc. PYPL – Up 65.6%

The Zacks Rank #3 company is one of the largest online payment solutions’ providers on the back of its solid product portfolio and two-sided platform that enables it to offer secure transaction facility to both customers and merchants.

ViacomCBS Inc. VIAC – Up 65.4%

It is a media and entertainment company which creates premium content and experiences for audiences. It has a Zacks Rank #3 and a VGM Score of B.

ETF Winners

Invesco SP 500 High Beta ETF SPHB – Up 35.8%

The underlying S&P 500 High Beta Index consists of the 100 stocks from the S&P 500 Index with the highest sensitivity to market movements, or beta, over the past 12 months. It charges 25 bps in fees and yields 2.42% annually (read: 5 High-Beta ETFs Available at a Bargain).

Invesco SP 500 Equal Weight ETF RSP – Up 20.9%

The underlying S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index. It charges 20 bps in fees and yields 2.14% annually.

Vanguard S&P 500 ETF VOO) – Up 20.7%

The underling S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market. The fund has a Zacks ETF Rank #2 (Buy). It yields 1.91% annually and charges only 3 bps in fees.

iShares Core S&P 500 ETF IVV – Up 20.7%

The S&P 500 Index measures the performance of the large-capitalization sector of the U.S. equity market. The Zacks Rank #2 fund yields 2.07% annually and charges 4 bps in fees.

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Apache Corporation (APA) : Free Stock Analysis Report
 
The Gap, Inc. (GPS) : Free Stock Analysis Report
 
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
 
iShares Core SP 500 ETF (IVV): ETF Research Reports
 
Vanguard SP 500 ETF (VOO): ETF Research Reports
 
Invesco SP 500 Equal Weight ETF (RSP): ETF Research Reports
 
Invesco SP 500 High Beta ETF (SPHB): ETF Research Reports
 
ViacomCBS Inc. (VIAC) : Free Stock Analysis Report
 
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