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SPYM

Feeling Burned Out on Tech Stocks? Buy SPYM

April 14, 2026 — 12:20 pm EDT

Written by

Ben Gran for

The Motley Fool->

Key Points

- Prominent tech stocks are down more than 20% year to date.

- Buying the State Street SPDR Portfolio S&P 500 ETF is an easy way to diversify into 500 stocks representing 80% of the U.S. market.

- SPYM has outperformed the tech-heavy Nasdaq-100 index so far in 2026.

- 10 stocks we like better than State Street SPDR Portfolio S&P 500 ETF ›

For the past several years, U.S. tech stocks have been one of the best places for investors to put their money. The tech-heavy Nasdaq-100 index has gained almost 79% in the past five years, while the Roundhill Magnificent Seven ETF is up about 144% during that time.

But so far in 2026, investors are feeling skeptical about tech stocks. The Nasdaq-100 has underperformed the S&P 500 index year to date. Mag 7 tech names like Meta, Microsoft, and Tesla have gotten hit by big year-to-date declines in their share prices -- META shares are down 4.6%, TSLA is down 22.4%, and MSFT is down 23.3%.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

SPYM data by YCharts

This doesn't mean tech stocks are "over." Investor fears about an artificial intelligence (AI) bubble or SaaSpocalypse might be overblown. But if you want to diversify your portfolio or find a more broad-based way to invest in stocks, the State Street SPDR Portfolio S&P 500 ETF (NYSEMKT: SPYM) could be a smart way to do it.

This low-cost index ETF offers you exposure to the entire S&P 500 index at one of the lowest expense ratios (0.02%) I've ever seen.

Let's look at why SPYM could be a smart investment for anyone who's wary of tech stocks.

SPYM: Buy into the "great rotation" away from tech?

The State Street SPDR Portfolio S&P 500 ETF lets you buy all the stocks in the S&P 500, representing 80% of the U.S. market. This can help you diversify away from tech -- and might help you get in on a positive growth trend called the great rotation. Investors seem to be rotating money away from tech stocks and into other parts of the stock market, like small-cap and value stocks.

Image source: Getty Images.

One concern that some investors might have about the S&P 500 index in recent years is that it was too top-heavy with major tech names. Even by "diversifying" with the S&P 500, you still might have ended up with too much tech in your portfolio.

But if this "great rotation" trend continues, SPYM investors could benefit. Even if the biggest tech names go through a long-term correction, the rest of the S&P 500 could still gain. The fact that SPYM has outperformed the Nasdaq-100 index year to date is a good sign that the rest of the S&P 500 is staying resilient despite some turbulence in tech.

SPYM: 20 years of 10.7% average annual returns

Since it tracks the performance of the S&P 500, SPYM will deliver almost exactly the same returns as that index. For the past 10 years, SPYM has generated average annual returns (by net asset value) of 14.2%, and for the past 20 years since its inception in November 2025, the fund has delivered 10.7% average annual returns. That's well in line with the S&P 500 index's long-term average of 10% per year.

The top holdings in SPYM include major tech names like Nvidia (7.6% of the fund), Apple (6.5%), and Microsoft (4.7%). But the fund's holdings by sector are only 33.4% Information Technology stocks. Other top sectors include Financials (12.5%), Communication Services (10.6%), Consumer Discretionary (9.8%), and Healthcare (9.2%).

If you're feeling nervous about AI stocks or want to take some profits on tech stocks, now could be a good time to buy SPYM. This diversified, low-cost ETF ranks as a good buy for long-term investors.

Should you buy stock in State Street SPDR Portfolio S&P 500 ETF right now?

Before you buy stock in State Street SPDR Portfolio S&P 500 ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and State Street SPDR Portfolio S&P 500 ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $556,335!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,160,572!*

Now, it’s worth noting Stock Adv