English test original 2024-06-25 13:24
Since the start of last year, the S&P 500 is up a robust 42%. This return is nothing to scoff at, with the annualized rate of that return standing near 26%, almost triple the index’s average annual gain over time.
But if we isolate the performance of tech stocks, we see a clearer picture emerge.
Over that same period, the S&P 500 Tech index, which houses Nvidia (NVDA), the market’s main character at the moment, as well as Microsoft (MSFT), Apple (AAPL), and two other key AI beneficiaries — Broadcom (AVGO) and AMD (AMD) — is up 100%. (As Jared Blikre flagged last week, however, investors buying the most popular tech ETF have missed out on some of this performance.)
Excluding the tech sector, the S&P 500 is up a respectable, but much closer to historically average, 24% over that period.