Should You Really Invest in a Tech ETF in 2026? Here's What History Says.
Yahoo Finance ·
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 ( QQQ -0.69% ) , which tracks the Nasdaq-100, has an average annualized return of 26% over the past three years. 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. Understandably, some investors are shying away from tech stocks amid this tenuous, uncertain environment for large-cap stocks. Here's why you should maintain allocations to technology stocks , particularly through a tech ETF .
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