# Nasdaq-100 Beats S&P 500 Returns With Higher Risk

**Published:** 2026-05-26T15:12:00.000Z  
**Topic:** Nasdaq Tech Stocks  
**Sentiment:** bullish  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/d2bdb837-62aa-4f4f-b26e-ecd858bfe0ee

The tech-heavy Nasdaq-100 has outperformed the S&P 500 over 20 years, but its concentration brings greater volatility and potential for larger losses.

Investors comparing the S&P 500 and the Nasdaq-100 face a trade-off between historical returns and risk exposure. While the tech-heavy Nasdaq-100 has generated superior returns over the long term, it is also more volatile and suffers bigger losses than the more diversified S&P 500 [1].

**Key takeaways**
*   The Nasdaq-100 tracks the 100 largest nonfinancial companies on the Nasdaq, while the

## Sources
1. Investopedia — [Nasdaq-100 or S&P 500? The Better Long-Term Investment Might Surprise You](https://www.investopedia.com/nasdaq-100-or-s-and-p-500-the-better-long-term-investment-might-surprise-you-11796258)
2. Treehugger — [treehugger.com/technology-4846040](https://www.treehugger.com/technology-4846040)

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Cite as: TrendWatcher, "Nasdaq-100 Beats S&P 500 Returns With Higher Risk", https://www.trendwatcher.in/article/d2bdb837-62aa-4f4f-b26e-ecd858bfe0ee