A tech sector exchange-traded fund has posted a record 28% outperformance over the S&P 500 over the past nine weeks, according to data. The gap between the sector ETF and the broad market index is the largest on record for that timeframe.
The nine-week stretch
The ETF, which tracks technology stocks, has surged while the S&P 500 has also risen, but at a much slower pace. The 28 percentage point difference means investors in the tech fund have seen returns that far exceed those of the broader market. The record performance comes amid a period of strong gains for major tech companies.
What the numbers show
Over the nine-week period, the tech sector ETF returned 28% more than the S&P 500. That outperformance is unprecedented for such a short span. The S&P 500 itself has posted gains, but the tech sector has led the way. The exact returns of the ETF and the index were not disclosed, but the margin is significant.
For investors, the record gap highlights the concentration of market gains in technology stocks. Those who allocated heavily to tech have benefited, while diversified portfolios may have lagged. The performance also raises questions about whether the rally can continue or if a correction is due. However, no specific forecasts are available.
The record performance will be closely watched by market participants as the nine-week period ends.
