Comments on: S&P 500 vs. Nasdaq 100: Which Index is Better? https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/ Sharing insights on how to grow wealth and gain freedom. Mon, 21 Oct 2019 19:35:06 +0000 hourly 1 https://wordpress.org/?v=6.6.1 By: Zach https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-39817 Wed, 30 Jan 2019 13:44:56 +0000 https://fourpillarfreedom.com/?p=32177#comment-39817 In reply to Gavin Young.

Yes, I assumed dividends were received and also reinvested.

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By: Gavin Young https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-39806 Wed, 30 Jan 2019 01:12:46 +0000 https://fourpillarfreedom.com/?p=32177#comment-39806 Did the performance comparison use total returns (that is, including dividends and reinvestment of dividends)?

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By: Zach https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36880 Tue, 13 Nov 2018 19:03:35 +0000 https://fourpillarfreedom.com/?p=32177#comment-36880 In reply to Get Rich Brothers.

Hey Ryan, glad to hear you came to the same conclusion! It’s true, depending on your objectives and your risk tolerance, it’s tough to say if one index is actually “better” than the other. That’s why I try to simply present the data and let the readers make their own decisions. Thanks for the feedback!

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By: Get Rich Brothers https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36861 Tue, 13 Nov 2018 02:12:26 +0000 https://fourpillarfreedom.com/?p=32177#comment-36861 Hey Zach,

As I read through the article, I was already coming to the conclusion that “it’s not clear cut”, so I was glad to see you always were leaning on the side of “it depends”. It looks to be a bit variable in terms of when your start/end periods are.
The great thing as investors is that it’s always possible to just own them both! That’s how I play situations where I can’t definitely make a choice (as with the Canadian Banks, Railways, etc.).

Take care,
Ryan

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By: Zach https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36843 Mon, 12 Nov 2018 17:10:47 +0000 https://fourpillarfreedom.com/?p=32177#comment-36843 In reply to Simple Money Man.

I like the lower volatility associated with the S&P 500 as well, but that’s just my preference. Investors with more appetite for risk may find QQQ to be a better investment.

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By: Zach https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36842 Mon, 12 Nov 2018 17:09:56 +0000 https://fourpillarfreedom.com/?p=32177#comment-36842 In reply to SAHD FIRE.

Most stock market index funds are fairly highly correlated, so although it’s tough to predict exactly which funds will perform best over the coming years, they’ll all likely deliver decent returns over the long term.

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By: Zach https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36841 Mon, 12 Nov 2018 17:08:58 +0000 https://fourpillarfreedom.com/?p=32177#comment-36841 In reply to Lin.

Thanks, Lin! I think the last graph in the post paints a nice picture as well. Yes, the Nasdaq 100 has outperformed in recent history, but it hasn’t always been that way and it might not necessarily always be that way.

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By: Simple Money Man https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36819 Mon, 12 Nov 2018 14:25:31 +0000 https://fourpillarfreedom.com/?p=32177#comment-36819 Personally, I’d go with the S&P for more inclusion and over the long-term, the difference in return is not much, but you get the comfort of a lot less volatility. Thanks for the graphs!

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By: SAHD FIRE https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36818 Mon, 12 Nov 2018 13:48:46 +0000 https://fourpillarfreedom.com/?p=32177#comment-36818 VTSAX, S&P500, NASDAQ100, it’s win/win/win. Like you mentioned in your article that there isn’t one that is clearly better than the other, and none of them are bad choices. Even though all-in-vtsax might disagree with me…

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By: Lin https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/#comment-36817 Mon, 12 Nov 2018 13:48:34 +0000 https://fourpillarfreedom.com/?p=32177#comment-36817 Really great, Zach. I clearly remember 2000 and the bursting “dot com” bubble. But tech is at least 10x more interwoven with all aspects of modern life now. There was a fervor then of IPOs and companies without any product, but with their stock prices climbing sky high. A lot of “tulip fever.” That last graph in this post of yours is particularly enlightening; thanks for the food for thought!

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