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.
3: Mixture of Non Tech
Contrary to popular belief, the Nasdaq 100 also as non tech stocks that are also great companies.
This include Costco, Walmart, Netflix, Starbucks, and many more.
Conclusion
Instead of investing in CSPX (S&P 500), I will now be investing in CNDX (Nasdaq 100) via Interactive Brokers and let’s see the results in a few years!
Disclaimer: Not financial advice, do your own research.
