Tech Stocks Have Led Markets Over Past Decade, But Concentration Risk Looms
• Technology sector has dramatically outperformed other sectors and the S&P 500 over the past decade, even when weighting is equalized • Outperformance was broad-based across technology stocks, not just driven by a few large companies • Fortune Future 50 list highlights 5 top tech stocks with strong growth prospects Snowflake, Datadog, CrowdStrike, Cloudflare, Bill Holdings • Buying a tech-focused index fund like Vanguard Information Technology ETF provides exposure, but has concentration risk in Apple and Microsoft • Can supplement S&P 500 index fund with individual tech stocks to limit downside risk but retain upside potential