What stocks outperform the S&P 500?
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has outperformed S&P by a wide margin. The average 10-year return of Nasdaq 100 over these 15 years was around 9%, while that of S&P 500 was about 5%.
S&P 500 Index Versus Nasdaq 100 Performance
Nasdaq 100 has outperformed S&P by a wide margin. The average 10-year return of Nasdaq 100 over these 15 years was around 9%, while that of S&P 500 was about 5%.
Fund / Ticker | Morningstar Category | 5-Year Return |
---|---|---|
Global X Uranium / URA | Natural Resources | 22.0 |
iShares MSCI Global Gold Miners / RING | Equity Precious Metals | 9.2 |
iShares U.S. Broker-Dealers & Securities Exchanges / IAI | Financial | 16.8 |
iShares US Healthcare / IYH | Health | 11.4 |
NYSEMKT: VOO
There are 11 sectors in the S&P 500. Yet only one sector, technology, has gained more than 85% over the last five years. You may be wondering, if the S&P 500 reflects the average performance of all 11 sectors, shouldn't around half of the sectors beat the market and half underperform?
- Coca-Cola. (NASDAQ: KO) ...
- Altria. (NASDAQ: MO) ...
- Amazon.com. (NASDAQ: AMZN) ...
- Celgene. (NASDAQ: CELG) ...
- Apple. (NASDAQ: AAPL) ...
- Alphabet. (NASDAQ:GOOG) ...
- Gilead Sciences. (NASDAQ: GILD) ...
- Microsoft. (NASDAQ: MSFT)
Potential drawbacks of investing in the S&P
The S&P 500 weighting system gives a small number of companies major influence, which could have an undue negative effect on the index if one or a few of them run into trouble.
Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.
S.No. | Name | CMP Rs. |
---|---|---|
1. | Guj. Themis Bio. | 384.75 |
2. | Refex Industries | 141.30 |
3. | Tanla Platforms | 941.15 |
4. | M K Exim India | 76.69 |
The second highest performing fund in the list was the $395m BlackRock US Growth fund, managed by Phil Ruvinsky and Caroline Bottinelli. The strategy was up 52.68% last year, after a 40.57% loss in 2022. Over a five-year period ending 2023, the strategy was up 92.91% – lagging the S&P 500 index return of 107.21%.
S.No. | Name | Qtr Profit Var % |
---|---|---|
1. | Waaree Renewab. | 158.05 |
2. | Tips Industries | 71.62 |
3. | Swadeshi Polytex | 480.58 |
4. | Lloyds Metals | 44.14 |
Has Warren Buffett outperformed the S&P?
Even the Oracle of Omaha, widely considered one of the most successful investors, has not been able to outperform the booming S&P 500 in recent years. The stock of Warren Buffett's holding company Berkshire Hathaway has nearly equaled the return of the S&P 500 for the past two decades, according to MarketWatch.
Since Buffett took control of Berkshire Hathaway in 1965, the stock has trounced the S&P 500. Its compound annual gain through 2023 was 19.8% versus 10.2% for the broader index. But Buffett says those days of market-trouncing returns are behind it.
Tech Still Rules the Roost
Tech continues to dominate in 2024. As businesses expand digital capabilities, demand soars for everything from cybersecurity to cloud services and data analytics. 5G infrastructure is the backbone supporting much of this tech-fueled future, delivering internet speeds 10 times faster than 4G.
Company | Performance (Year) |
---|---|
Netflix Inc. (NFLX) | 83.88% |
Applied Materials Inc. (AMAT) | 80.20% |
KLA Corp. (KLAC) | 79.89% |
Advanced Micro Devices Inc. (AMD) | 77.90% |
Institutional Investor | No. of Shares |
---|---|
Berkshire Hathaway | 915.56 million |
State Street | 576.28 million |
Geode Capital Management | 285.17 million |
Fisher Asset Management | 52.35 million |
- Initial Share Price: $1.51.
- Lowest Price: $1.31.
- Peak Price: $3,773.08.
- Stock Returns Increase from Low to High: 287,472.76%
- Highest Day Return 1st September 1998: 33.27%
According to our calculations, a $1000 investment made in February 2014 would be worth $5,971.20, or a gain of 497.12%, as of February 5, 2024, and this return excludes dividends but includes price increases. Compare this to the S&P 500's rally of 178.17% and gold's return of 55.50% over the same time frame.
In 1980, had you invested a mere $1,000 in what went on to become the top-performing stock of S&P 500, then you would be sitting on a cool $1.2 million today.
Once you have $1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a $1 million index fund could provide $100,000 annually.
The performance of an investment option is often one of the most critical aspects investors consider. The performance of these two ETFs will be highly dependent on the performance of the information technology sector. If information technology significantly outperforms other sectors, then QQQ will outperform VOO.
Why is SPY more popular than VOO?
Almahasneh: The main reason comes down to—and I cover a lot of passive index funds—a lot of the differences in ratings, they come down to the difference in fees. VOO charges 3 basis points, while SPY charges 9 basis points. Both are very low cost compared to the average ETF in the US market.
The S&P 500 simply reflects the market composition. In the long run, the funds' broad diversification, low turnover, and low fees outweigh these risks.” While the two ETFs follow the same strategy, they earn different ratings. VOO earns a top rating of Gold, while SPY earns the next best rating of Silver.
Stock | Expected Change in Stock Price* |
---|---|
Tesla Inc. (TSLA) | 61% |
Mastercard Inc. (MA) | 14.2% |
Salesforce Inc. (CRM) | 7.2% |
Advanced Micro Devices Inc. (AMD) | 11.3% |
S.No. | Name | ROCE % |
---|---|---|
2. | Insolation Ener | 19.64 |
3. | SG Mart | 14.52 |
4. | Waaree Renewab. | 83.80 |
5. | Veritas (India) | 4.59 |
Wayfair Inc. (NYSE:W), Match Group, Inc. (NASDAQ:MTCH), and Palantir Technologies Inc. (NYSE:PLTR) are some of the stocks that will double in 2024, besides StoneCo Ltd.