The S 500 is a market capitalization-weighted index, meaning the largest of its 500 constituents have a greater influence over its performance than the smallest. The index is up 16% this year and it's firmly trading in bull market territory, but a significant portion of that return has come from just a small handful of large-cap technology stocks.

Nvidia stock, for example, is up 154% this year and is responsible for one-third of the entire gain in the S 500. In other words, investors who don't have exposure to Nvidia (and other high-flying stocks like and Apple) have probably underperformed the index in 2024.

But investors don't have to rush to buy these stocks right now. Instead, it might be better to buy exchange-traded funds (ETFs) that favor the technology sector, because they can offer a diversified way to participate in high-growth trends like artificial intelligence (AI).

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Source Fool.com