S&P 500 ETF Gains 15.7% Yearly, Rebounds 1.2% After 1.5% Drop
SPDR S&P 500 ETF Trust posted a 15.7% gain during President Trump's first year of his second term but experienced a 1.5% one-day drop—the largest since November 2025—followed by a 1.2% rebound. Investor interest in SPY surged as the VIX climbed above 20 on renewed tariff and geopolitical uncertainty.
1. SPY Year-One Performance
The SPDR S&P 500 ETF Trust achieved a total return of 15.7% during the first year of President Trump’s second term, according to ETF provider data. This gain outpaced the historical average annual return of the S&P 500 index over the past decade by roughly 4 percentage points. Sector contributions were led by information technology, which accounted for 40% of the ETF’s year-to-date upside, while consumer discretionary and communication services added 25% and 15%, respectively. Market breadth was robust: 85% of the S&P 500 components delivered positive returns, and the ETF’s average daily trading volume rose by 12% compared with the prior year, signaling heightened investor participation.
2. SPY Weekly Volatility
This week the SPY experienced its largest one-day percentage drop since November 2025, sliding 1.5% on Tuesday amid tariff-related uncertainty. The ETF rebounded 1.2% on Wednesday after reports of eased trade tensions, trimming its two-day loss to 0.3%. Implied volatility for SPY options climbed to a two-month high of 17.8%, up from 15.3% at the start of the week, indicating that investors are pricing in larger potential swings. Trading in SPY options skewed toward puts, with put open interest rising 22%, reflecting growing demand for downside protection around upcoming economic policy announcements.