Should You Really Invest in a Tech ETF in 2026? Here's What History Says.
History has shown that few sectors have had better long-term returns than tech stocks.
Overview
Technology stocks just keep moving higher, sparking fears of a bubble amid soaring valuations.
The Nasdaq-100, a leading gauge of large-cap tech stocks, is now up 20% year to date. If it holds, this would mark the fourth straight year that it has returned more than 20%. The Invesco QQQ ETF (NASDAQ: QQQ), which tracks the Nasdaq-100, has an average annualized return of 26% over the past three years.
Details
This four-year large-cap run has resulted in valuations reaching historically high levels. The Shiller P/E ratio, which tracks S&P 500 stock valuations across a 10-year period, adjusted for inflation, is close to an all-time high at roughly 40, the highest since the dot-com boom and bust in 1999-2000, when it peaked at 44.
Source
Originally published at www.fool.com.