Tech Equity Premium?

A subscriber requested measurement of a “premium” associated with stocks of innovative technology firms by looking at the difference in returns between the following two exchange-traded funds (ETF):

• Invesco QQQ Trust (QQQ), which generally tracks the NASDAQ 100 Index
• SPDR S&P 500 (SPY)

Using monthly dividend-adjusted closing prices for these ETFs during March 1999 (limited by QQQ) through January 2022, we find that: (more…)