The S&P 500 is a popular stock index that represents the best big stocks. However, there are several large winners that are not included in the S&P 500, and investors may be missing out on their potential gains. According to an analysis from Investor’s Business Daily, eight giant stocks, including Dell Technologies, The Trade Desk, and Apollo Global Management, have outperformed the S&P 500 by more than 40% this year. These companies are all profitable and have market values of at least $30 billion. While the S&P 500 captures the majority of large U.S. stocks, there are still high-performing stocks that fall outside its scope.
One standout example is Dell Technologies, which has a market value of $50 billion and has seen its shares rise more than 74% this year. Despite its success, it is not part of the S&P 500. Similarly, another profitable tech sector winner, VMware, with a market value of $72 billion, is also not included in the index but has gained over 35% this year. The Trade Desk, a well-run manager of online advertising, is a top-favored candidate to join the S&P 500, with shares up more than 67% and a market value of $50 billion. These examples highlight that even though the S&P 500 covers most big stocks, there are notable omissions that could potentially generate significant returns.
The fact that these outperforming stocks are excluded from the S&P 500 is worth noting. While the index is designed to include a majority of large U.S. stocks, it does not guarantee that all top performers will be included. This leaves investors with the possibility of missing out on substantial gains. It is important for investors to consider these omitted stocks and assess their potential opportunities when building their portfolios.