S&P 500 ETF Drops 1.5% then Rallies 1.2% as Goldman Sachs Sees 12% Gain
SPDR S&P 500 ETF fell 1.5% Tuesday after tariff threats, then rebounded 1.2% following their withdrawal. Goldman Sachs strategists forecast a 12% gain for the index in 2026, noting a forward P/E of 22x at 2021 peak levels.
1. Azarias Capital’s SPY Stake Remains Largest Fund Holding
In its Q4 13F filing, Azarias Capital Management reported a $72.6 million position in the SPDR S&P 500 ETF Trust, representing 31.8% of its reportable assets under management. Despite trimming other positions, the fund maintained this allocation to SPY as its single largest exposure, underscoring continued confidence in broad U.S. large-cap equity performance.
2. SPY Mirrors 14% S&P 500 Gain Over Past Year
Over the 12 months ending January 22, the SPY ETF closely tracked the S&P 500’s total return of approximately 14%, providing investors diversified exposure to the index’s 500 largest U.S. companies. This performance highlights SPY’s role as a core holding for tracking market-wide equity returns, especially compared to sector-specific or commodity-linked assets.
3. Short-Term Volatility Around Geopolitical News
SPY experienced a 1.5% intraday decline on Tuesday following heightened trade-war rhetoric, then rebounded 1.2% on Wednesday after tariff threats were withdrawn. This 2.7% trading range within 24 hours illustrates SPY’s sensitivity to headline-driven market swings, reinforcing the ETF’s use as both a tactical trading vehicle and a long-term portfolio anchor.