If you’ve been following the stock market for the past few years, you might assume that tech stocks are always the best place to put your money.
Tech stocks always outperform the S&P 500 index, right?
The reality is complicated. It’s true that the tech-heavy Nasdaq-100 index, which includes America’s most well-known tech companies, has outperformed the S&P 500 for the past 15 years. As of June 30, 2025, the Invesco QQQ ETF (NASDAQ: QQQ), which tracks the Nasdaq-100, had beaten the S&P 500 in seven of the previous 10 years.
But past performance doesn’t guarantee future results. Loading up on tech stocks isn’t the right move for every investor. Many long-term investors might be better off buying an S&P 500 index fund like the State Street SPDR Portfolio S&P 500 ETF (NYSEMKT: SPYM) instead of putting too many eggs in a tech-heavy basket.