Tech Stocks Power S&P 500 above 3,000

It took five short years for the S&P 500 to cross from 2,000 to above 3,000 and record highs.  Tech stocks are the primary reason. 

The tech sector is up over 125% during this time frame, 30% YTD:

Well-known names like Amazon and Netflix have led the pack, but the surge is broader and more extensive involving semiconductor stocks, videogamers, and others.

Tech has become the largest sector in the S&P 500 at roughly 23%.  The next largest is Financials at 15%, followed by Healthcare at 14%.  The large percentage of tech stocks has helped fuel the growth.

Investors should always be aware of what they're buying and what's driving performance even when it's an index like the S&P 500.  The high weighting makes the index vulnerable should tech stumble, but with over 11 sectors, the index is diversified, offering investors willing to accept some increased volatility growth upside.

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