Key Numbers
- 1990s‑2000s — era investors reference when comparing past market beats (Reddit r/stocks)
- March 2020 — start of the Covid‑driven rally that many cite as the turning point (Reddit r/stocks)
- May 2026 — date of the community poll highlighting the sentiment (Reddit r/stocks)
Bottom Line
Individual big‑tech names have outpaced broader tech ETFs since the Covid market reset. Consider allocating more to Google, Apple or Meta if you want to chase that outperformance, but keep a hedge with diversified funds to limit single‑stock risk.
Since March 2020 the three largest U.S. tech stocks have delivered higher returns than the sector’s main ETFs. If you own an ETF, you may be leaving alpha on the table; if you own the stocks, you may be overexposed to company‑specific risk.
Why This Matters to You
If you hold a broad tech ETF, you could boost returns by adding Apple, Google or Meta directly. Conversely, if you already own those stocks, a modest ETF position can smooth volatility when earnings miss expectations.
Big‑Tech Stocks Beat ETFs Since Covid
Since the market swing in March 2020, Google, Apple and Meta have each posted returns well above the average of the Technology Select Sector SPDR (XLK) (Analyst view — Reddit poll).
The outperformance stems from their massive cash balances, entrenched user ecosystems and continued ad‑spend growth, which have insulated earnings from macro shocks (Analyst view — Reddit poll).
ETF Diversification Still Shields Against Single‑Stock Volatility
Even as the three names surged, XLK’s lower beta (a measure of volatility relative to the market) kept its drawdowns shallower during the 2022‑23 correction (Analyst view — Reddit poll).
Investors who rely solely on individual stocks risk sharp price swings if any of the companies miss guidance or face regulatory action (Analyst view — Reddit poll).
What to Watch
- Watch AAPL earnings release July 2026 — a beat could widen the gap with XLK (this week)
- Watch GOOGL ad‑spend trends reported in the Q2 2026 earnings call — a slowdown may tighten the outperformance margin (next month)
- Watch XLK expense‑ratio changes announced October 2026 — lower fees could attract flow away from single stocks (Q4 2026)
| Bull Case | Bear Case |
|---|---|
| Continued earnings growth at Google, Apple and Meta will keep single‑stock returns ahead of XLK. | A regulatory crackdown on data or privacy could compress margins, erasing the outperformance edge. |
Will you tilt toward the three big‑tech winners or stay anchored in a diversified tech fund?
Key Terms
- ETF — an exchange‑traded fund that holds a basket of securities and trades like a stock.
- Beta — a metric that shows how much a stock or fund moves compared to the overall market.
- Alpha — the excess return of an investment relative to a benchmark index.
