S&P 500 Tech vs Broader Tech

More gains elsewhere

If you invest in the S&P 500, you can feel confident you are getting a broad basket of stocks that represent the market. But, you aren’t getting everything.

Overall, missing out on the rest of the stocks that aren’t in the S&P 500 isn’t a huge deal. But, when you look at one of the best performing stock sectors, technology, you’ll see that the S&P 500 misses out on a decent amount of gains from companies not represented by the index:

While the QQQ represents only the top 100 Nasdaq constituents, it already shows that stocks outside the S&P 500 can give us an edge to outperform. While it’s obvious that some stocks not represented by the S&P 500 do well, many also do worse and a lot of the noise evens out.

This, however, is evidence for one stock group that can offer consistent long-term outperformance. That is, if you believe the trend will continue. After all, tech has done very well the last ten years. Will it continue another ten?

More Metrics

Initial claims remain consistently elevated

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