Feeling Burned Out on Tech Stocks? Buy SPYM

For the past respective years, U.S. tech stocks person been 1 of the champion places for investors to enactment their money. The tech-heavy Nasdaq-100 scale has gained astir 79% successful the past 5 years, portion the Roundhill Magnificent Seven ETF is up astir 144% during that time.

But truthful acold successful 2026, investors are feeling skeptical astir tech stocks. The Nasdaq-100 has underperformed the S&P 500 scale twelvemonth to date. Mag 7 tech names similar Meta, Microsoft, and Tesla have gotten deed by large year-to-date declines successful their stock prices -- META shares are down 4.6%, TSLA is down 22.4%, and MSFT is down 23.3%.

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This doesn't mean tech stocks are "over." Investor fears astir an artificial quality (AI) bubble oregon SaaSpocalypse mightiness beryllium overblown. But if you privation to diversify your portfolio oregon find a much broad-based mode to put successful stocks, the State Street SPDR Portfolio S&P 500 ETF (NYSEMKT: SPYM) could beryllium a astute mode to bash it.

This low-cost scale ETF offers you vulnerability to the full S&P 500 scale astatine 1 of the lowest disbursal ratios (0.02%) I've ever seen.

Let's look astatine wherefore SPYM could beryllium a astute concern for anyone who's wary of tech stocks.

The State Street SPDR Portfolio S&P 500 ETF lets you bargain each the stocks successful the S&P 500, representing 80% of the U.S. market. This tin assistance you diversify distant from tech -- and mightiness assistance you get successful connected a affirmative maturation inclination called the large rotation. Investors look to beryllium rotating wealth distant from tech stocks and into different parts of the banal market, similar small-cap and worth stocks.

One interest that immoderate investors mightiness person astir the S&P 500 scale successful caller years is that it was excessively top-heavy with large tech names. Even by "diversifying" with the S&P 500, you inactive mightiness person ended up with excessively overmuch tech successful your portfolio.

But if this "great rotation" inclination continues, SPYM investors could benefit. Even if the biggest tech names spell done a semipermanent correction, the remainder of the S&P 500 could inactive gain. The information that SPYM has outperformed the Nasdaq-100 scale twelvemonth to day is simply a bully motion that the remainder of the S&P 500 is staying resilient contempt immoderate turbulence successful tech.

Since it tracks the show of the S&P 500, SPYM volition present astir precisely the aforesaid returns arsenic that index. For the past 10 years, SPYM has generated mean yearly returns (by nett plus value) of 14.2%, and for the past 20 years since its inception successful November 2025, the money has delivered 10.7% mean yearly returns. That's good successful enactment with the S&P 500 index's semipermanent mean of 10% per year.