Tech dominates the S&P 500
Tech has absolutely dominated the S&P 500 this year. Just take a look at this data visualisation that I published yesterday. Now I've covered this before, but I've never actually broken down the return contribution into its component parts i.e. the Magnificent Seven: Apple, Microsoft, Amazon, Alphabet (Google), Meta, Nvidia and Tesla.
In some instances during this year, the rest of the S&P 500 (colloquially called, the S&P 493) actually took away performance from the Index. Watch the video and spot those moments when that occurred. It really makes you wonder, what does the S&P 500 mean anymore? Should it just be called the S&P 7?
It's pretty mad isn't it? Without those seven magnificent, mega technology firms, we as investors would've only earned 4.07% from the S&P 500 this year. Bear in mind inflation is 3.2% in the United States year-on-year.
Dataset
Date | 22.11.2023 |
---|---|
Group | YTD return contribution (%) |
Apple | 3.044128721 |
Amazon | 1.715647611 |
1.736351245 | |
Meta | 1.471155062 |
Microsoft | 3.170441609 |
Nvidia | 2.7593888 |
Tesla | 1.185352491 |
Magnificent 7 | 15.08246554 |
S&P 493 | 4.0717 |
S&P 500 | 19.15411688 |
Group | Share of the index (%) |
Magnificent 7 | 29.08 |
Data sources
I built the data set using the weight defined by the SPDR S&P 500 ETF Trust (SPY). I found this on the slickcharts website. The performance data I obtained from S&P Dow Jones Indices directly.