The one-year rolling volatility, calculated by annualizing the standard deviation of daily returns, has shown a slight elevation in the Nasdaq-100 compared to the S&P 500. On average, it has been just 2.6% higher over the period spanning from December 31, 2007, to September 30, 2023.A detailed analysis of their annual total returns, including reinvested dividends, reveals that the Nasdaq-100 Total Return™ Index has exceeded the S&P 500 in 12 out of these 16 calendar years, achieving an impressive average annual return of +18.2%.The S&P500 and the NASDAQ are both indices of stocks and there's a lot of overlap between the 2. Many of the top 10 stocks are the same, so if you're invested in both, you may not be as diversified as you think.
What is the difference between DJIA and S&P 500 and Nasdaq : Key Takeaways
The DJIA tracks the stock prices of 30 of the biggest American companies. The S&P 500 tracks 500 large-cap American stocks. Both offer a big-picture view of the state of the stock markets in general.
How volatile is the S&P 500
S&P 500 Index GARCH Volatility Analysis
| Closing Price: | $5,297.10 |
|---|---|
| Max Vol: | 96.89% |
| 6 Month Pred: | 15.20% |
| Average Vol: | 18.03% |
| Vol of Vol: | 23.71% |
Why is Nasdaq so volatile : Because the Nasdaq Composite is dominated by the historically volatile technology sector, index performance tends to be more volatile than that of the S&P 500 or the Dow Industrials.
QQQ, which has $255 billion of assets under management, has exceeded the the S&P 500's gains since the Nasdaq-100-tracking fund launched 25 years ago, according to FactSet data.
S&P MidCap 400 sectors outperformed 8 of their 10 S&P 500 counterparts. This suggests that the mid-cap segment not only delivered more reliable performance during the periods studied (outperformance in multiple periods), but it also outshined the large-cap segment in performance breadth (outperformance across sectors).
What is better than S and P 500
The S&P 500's track record is impressive, but the Vanguard Growth ETF has outperformed it. The Vanguard Growth ETF leans heavily toward tech businesses that exhibit faster revenue and earnings gains. No matter what investments you choose, it's always smart to keep a long-term mindset.If you want to capture gains of a broad swath of the market, then the S&P 500 is your best bet. However, if you are interested in a safe strategy that mirrors price movements of well-established blue-chip stocks, then the Dow is a good choice.S&P 500 uses a market cap methodology, giving a higher weighting to larger companies, whereas the DJIA uses a price weighting methodology which gives more expensive stocks a higher weighting. Many investors believe a market cap methodology is a more accurate indication of true market conditions.
Annual returns
So far in 2024 (YTD), the S&P 500 Minimum Volatility index has returned an average 8.70%.
Is Dow Jones more volatile than S&P 500 : The downside to having more sectors included in the index is that the S&P 500 tends to be more volatile than the Dow. Thus, its gains may be higher on days when the market does well and losses steeper when the market falls.
What are the most volatile Nasdaq stocks : Most volatile US stocks
| Symbol | Volatility | Price |
|---|---|---|
| NVAX D | 75.84% | 8.88 USD |
| XPOF D | 65.15% | 8.48 USD |
| GWAV D | 61.81% | 0.0439 USD |
| AEMD D | 61.26% | 1.18 USD |
Why is QQQ more volatile than SPY
Moreover, the influence of the 10 largest companies in this index is even more significant than in the S&P 500. The NASDAQ-100 includes 100 non-financial companies from the NASDAQ stock exchange. This makes the QQQ fund more volatile and risky due to the predominance of tech companies.
Investment fees are one major barrier to beating the market. If you take the popular advice to invest in an S&P 500 index fund rather than on individual stocks, your fund's performance should be identical to the performance of the S&P 500, for better or worse.It's not easy to beat the S&P 500. In fact, most hedge funds and mutual funds underperform the S&P 500 over an extended period of time. That's because the S&P 500 selects from a large pool of stocks and continuously refreshes its holdings, dumping underperformers and replacing them with up-and-coming growth stocks.
Do any ETFs beat the S&P 500 : Sector ETFs are another way to beat the S&P 500. While no single sector will beat the broad-market index all the time, investing in sector ETFs can pay off. With geopolitical tensions in the world, defense stocks are up this year, and that has made the Global X Defense Tech ETF (SHLD 0.32%) a winner.