The S 500 (SNPINDEX: ^GSPC) is a market capitalization-weighted index, which means the largest of its 500 constituents have a greater influence over its performance than the smallest. The index logged a 15% return through the first half of 2024, but a substantial portion of that came from a mere handful of large-cap technology stocks.

Nvidia, , Apple, Amazon, and Meta Platforms account for over one-quarter of the entire value of the S 500, and combined they have returned an average of 49.7% in 2024 so far.

Simply put, investors who don't own those stocks are probably underperforming the broader market -- but that doesn't mean they should pile into them right now. Instead, it might be better to buy one or two exchange-traded funds (ETFs) which are weighted toward the technology sector, because they can offer a more diversified way to ride the wave of high-growth trends like artificial intelligence (AI).

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Source Fool.com