The conventional advice is invest in the S&P 500 every month, like a DCA strategy.
For many years I agree with it, but right now in July 2026 I have decided to shift all of my S&P 500 investments to the Nasdaq 100.
Here are a few reasons why:
1: Historical Returns
If we look at the average annualised returns in the last 10 years, the Nasdaq 100 shows 21.7% vs the S&P 500 of 15.6%.
Which we can argue these are historical records in the past 10 years that does not necessarily project future returns.
Which then brings us to point 2
2: Future Outlook
If we look at the next 5-10 years, I believe this era will be dominated by tech and AI, sectors that are heavily concentrated in the Nasdaq 100.
So if my conviction in tech and AI is high, I should take on more risk and put the money where my conviction lies, instead of hedging too much with the S&P 500.
Stocks such as Meta, Amazon, Nvidia, AMD, Micron, Apple, Google are all top tech stocks that are active components of the Nasdaq 100.
I believe to win, we need to have high conviction + concentrated/focused position, hence the switch to Nasdaq 100.
Conclusion
Instead of investing in CSPX (S&P 500), I will now be investing in CNDX (Nasdaq 100).
Disclaimer: Not financial advice, do your own research.
