NASDAQ-100

[SkinnyPete]

The NASAQ-100 is an index I don t see get talked about very often, despite outperforming the S&P500 since the start of the internet.

Software/tech has eaten into the margins of companies in all sectors of the economy - do you think this fundamental trend of more technology adoption has run its course yet? Do you think we will have less technology in the next 5, 10, 15 years?

Right now, I m fully invested in the Vanguard FTSE Global All Cap, but i'm starting to consider if I should add a small technology tilt - maybe 5%, similar to how some people approach crypto.

Edited by SkinnyPete on Monday 6th October 11:32

[okgo]

You already have a huge technology tilt, 28.3% to be precise.

[PM3]

If that is your fund, you are already 28.3% into Technology equities

Saying that , I have been planning to up risk my holdings in my GIA ( curreently 40/60 in VUAG/VHVG ) by adding ( a diffferent platform) 10% or more in a Technology only fund

[Derek Chevalier]

SkinnyPete said:

The NASAQ-100 is an index I don t see get talked about very often

Gvien that it regulary features on retail investor best buy tables, I'd struggle to believe that to be true

https://www.boringmoney.co.uk/learn/articles/bests...

SkinnyPete said:

despite outperforming the S&P500 since the start of the internet.

I have data going back to April 99, and while the Nasdaq 100 has outperformed the S&P 500 on a raw returns basis, it has done so with around 50% more volatility and a far greater max drawdown (-81% vs 50%). So not really a valid comparison, IMO.

Perhaps surprisingly, US small cap value has outperformed both on a raw returns basis over the same period, but doesn't often feature on best buy tables. I assume because many retail investors focus more on what is working now. Same for emerging markets small cap.

[SkinnyPete]

PM3 said:

If that is your fund, you are already 28.3% into Technology equities

Saying that , I have been planning to up risk my holdings in my GIA ( curreently 40/60 in VUAG/VHVG ) by adding ( a diffferent platform) 10% or more in a Technology only fund

Yeah, that’s what I was getting at.

The FTSE Global All Cap already has a healthy chunk of tech, but the NASDAQ-100 could be a smart way to lean in a little more with a small, higher-risk allocation.

[SkinnyPete]

Derek Chevalier said:

SkinnyPete said:

The NASAQ-100 is an index I don t see get talked about very often

Gvien that it regulary features on retail investor best buy tables, I'd struggle to believe that to be true

https://www.boringmoney.co.uk/learn/articles/bests...

SkinnyPete said:

despite outperforming the S&P500 since the start of the internet.

I have data going back to April 99, and while the Nasdaq 100 has outperformed the S&P 500 on a raw returns basis, it has done so with around 50% more volatility and a far greater max drawdown (-81% vs 50%). So not really a valid comparison, IMO.

Perhaps surprisingly, US small cap value has outperformed both on a raw returns basis over the same period, but doesn't often feature on best buy tables. I assume because many retail investors focus more on what is working now. Same for emerging markets small cap.

True, it does show up on best buy tables - but what I meant is that it’s barely discussed in forums or content. Hardly any threads here, and not much coverage from finance bloggers or influencers either.

Though I appreciate the point on volatility - but for someone investing over 10 or 15 years, does it really matter? I'm OK with it.

[Derek Chevalier]

SkinnyPete said:

Though I appreciate the point on volatility - but for someone investing over 10 or 15 years, does it really matter?

Some may not be comfortable holding an investment that was still over 50% below the price they paid for it 10 years later (QQQ from March 2000-March 2010).

[butchstewie]

Yeah the NASDAQ is absolutely great until it suddenly isn't

[sideways sid]

SkinnyPete said:

The NASAQ-100 is an index I don t see get talked about very often, despite outperforming the S&P500 since the start of the internet.

Software/tech has eaten into the margins of companies in all sectors of the economy - do you think this fundamental trend of more technology adoption has run its course yet? Do you think we will have less technology in the next 5, 10, 15 years?

Right now, I m fully invested in the Vanguard FTSE Global All Cap, but i'm starting to consider if I should add a small technology tilt - maybe 5%, similar to how some people approach crypto.

Edited by SkinnyPete on Monday 6th October 11:32

Check out QQQ, a major ETF providing exposure to Nasdaq-100 and widely used by retail investors so probably with more visible coverage than the underlying index.

https://www.invesco.com/qqq-etf/en/home.html

[Panamax]

Stop Press,
"S&P100 outperforms S&P500."

Very roughly. Since S&P500 is dominated by a handful of companies it's no surprise that if you "cut off the tail" the performance looks even better. Hence the Nasdaq effect.

[SkinnyPete]

Our man Ramin has just dropped a nice video on the NASDAQ.

https://youtu.be/K_LCI_DJrAw?si=hAdXdk7OBje_B5pY