The top ten index stocks tracked by the two companies overlap to some extent, but the proportions are different. The constituent stocks of the Standard & Poor's 500 Index include the top 500 listed companies in the United States, covering about 80% of the market value of American stocks, and are widely distributed in various industries. It is the most representative index. Nasdaq ETF tracks the Nasdaq 100 index, which is a stock market index composed of the largest local and international non-financial listed companies in the United States. Its 100 constituent stocks all have the characteristics of high technology, high growth and non-finance, which can be said to be the representatives of American technology stocks.
Relatively speaking, Nasdaq is better than S&P 500 in the monetary easing cycle, and S&P 500 is better than Nasdaq in the monetary tightening cycle. The volatility of Nasdaq is higher than that of Standard & Poor's 500. If the volatility is acceptable, in the long run, the Nasdaq index can surpass the S&P 500, and the S&P 500 will be more even.