The S&P 500 is a stock market index that tracks 500 of the largest companies listed in the United States, spanning nearly every sector of the economy. It is one of the most widely followed benchmarks for the health of the US stock market. On Luno, investors can get exposure to the index through SPYx, a tokenised way to hold a share of the S&P 500 without buying into 500 separate companies.
What does the S&P 500 track
The S&P 500 is maintained by S&P Dow Jones Indices and includes roughly 500 large companies listed on US stock exchanges, together covering around 80 percent of the total value available in the US market. Because a handful of companies issue more than one class of share, the index technically holds a little over 500 stock tickers, though it is still referred to by its original number.
The companies in the index span nearly every part of the economy, including technology, healthcare, financial services, industrials, energy and consumer goods. Each company's influence on the index is weighted by its market value, meaning larger companies have a bigger effect on how the index moves overall.
A committee reviews the index regularly and adjusts its members as companies grow, shrink, merge or are replaced. This keeps the S&P 500 broadly reflective of the US economy over time, rather than fixed to the same 500 companies indefinitely.
How SPYx gives access to the S&P 500 on Luno
Buying into all 500 companies individually would take significant capital and hundreds of separate trades. SPYx removes that barrier. It gives customers tokenised exposure to the S&P 500 in a single trade, with fractional ownership meaning there is no need to hold a full share of every underlying company.
This is one of several ways Luno customers can approach diversification, and it tends to be used as a foundation that other, more specific investments sit alongside.
What does the Nasdaq 100 track
The Nasdaq 100 is maintained by Nasdaq and tracks 100 of the largest companies listed on the Nasdaq stock exchange, with one significant difference from the S&P 500. It excludes companies from the financial sector entirely, such as banks and insurers. QQQx is the tokenised ticker that can be found on Luno.
Because of this exclusion, the Nasdaq 100 leans heavily toward technology, communication services and consumer discretionary companies. It includes many of the names most associated with software, hardware and internet platforms, alongside companies in healthcare and industrials.
S&P 500 versus Nasdaq 100, past performance over the last 10 years
Looking back over the past decade shows how differently these two indices have moved. According to historical return data from Official Data, the S&P 500 returned approximately 365 percent cumulatively between 2016 and 2026 with dividends reinvested, working out to roughly 15.8 percent per year. Over a comparable window, performance data from CalculatorInvest shows the Nasdaq 100 returned approximately 515 percent cumulatively, or close to 19.9 percent per year.
Metric | S&P 500 (SPYx) | Nasdaq 100 (QQQx) |
Companies tracked | Approximately 500, across every major sector | 100, excluding companies in the financial sector |
Sector lean | Broadly spread across the economy | Concentrated in technology, communication services and consumer discretionary |
10 year cumulative return* | Approximately 365%, with dividends reinvested | Approximately 515%, with dividends reinvested |
10 year annualised return (CAGR)* | Approximately 15.8% per year | Approximately 19.9% per year |
Sector concentration risk | Lower, spread across many industries | Higher, more exposed to swings in the technology sector |
*Figures reflect historical index performance in US dollars over the ten years to mid 2026, sourced from third party market data providers. These are index level returns, not the returns of SPYx or QQQx directly, which may differ due to fees, tracking, and conversion between US dollars and your local currency. Past performance does not predict or guarantee future returns, and both indices remain exposed to normal market ups and downs.
This gap in past returns lines up with what the two indices are built to do. The Nasdaq 100's heavier weighting toward technology and growth companies meant it benefited more from the strong run those sectors have had over the past decade. The S&P 500's broader sector spread meant it captured less of that specific growth, but also carried less concentration in any single part of the economy. Neither pattern is guaranteed to repeat, and a decade that favoured growth stocks does not mean the next one will follow the same shape.
S&P 500 or Nasdaq 100, what the difference means for an investor
The core difference comes down to concentration. The S&P 500 spreads exposure across every major sector of the US economy, while the Nasdaq 100 concentrates more heavily in technology and growth focused companies.
Rather than treating this as a choice between two rivals, many investors use the two indices differently. Some hold the S&P 500 as a broad, diversified base and add the Nasdaq 100 for extra weighting toward technology and growth. Others prefer the sector spread of the S&P 500 on its own. There is no single right answer, and the decision comes down to how much technology concentration an investor is comfortable holding.
How to invest in the S&P 500 and Nasdaq 100 on Luno
Luno customers can access both indices through SPYx and QQQx, the tokenised products that track the S&P 500 and Nasdaq 100 respectively. Both can be bought fractionally, so there is no need to save up for a full unit before getting started. They can be found alongside Luno's other tokenised stocks and ETFs in the app, and bought in the same way as any other asset on the platform.
*Investing in Crypto assets may result in the loss of capital. Luno (Pty) Ltd is an authorised financial services provider (FSP No. 53314), and registered credit provider (NCRCP22123).
Frequently asked questions
What is the S&P 500 in simple terms
The S&P 500 is a list of about 500 of the largest companies in the United States, grouped together into a single index so investors can track or invest in all of them at once, rather than picking individual stocks.
What is the difference between the S&P 500 and the Nasdaq 100
The S&P 500 covers around 500 companies across every major sector of the US economy. The Nasdaq 100 covers 100 companies listed on the Nasdaq exchange and excludes financial companies, leaning more heavily toward technology and growth sectors.
How has the Nasdaq 100 performed against the S&P 500 over the past 10 years
Over the 10 years to mid 2026, the Nasdaq 100 returned more than the S&P 500 on a cumulative basis, largely due to its heavier weighting toward technology and growth companies. Past performance does not guarantee this pattern will continue.
Can South African investors get exposure to the S&P 500 and Nasdaq 100
Yes. Through Luno, South African investors can buy tokenised access to both indices via SPYx, which tracks the S&P 500, and QQQx, which tracks the Nasdaq 100.
Is the Nasdaq 100 riskier than the S&P 500
The Nasdaq 100 is more concentrated in technology and growth companies, which can make it move more sharply in either direction compared with the more broadly spread S&P 500. This does not mean one index is inherently better or worse, only that they carry a different sector mix.
