The S&P 500 Information Technology Index is a sectoral component of the S&P 500, representing the performance of companies classified within the GICS information technology sector. The index can be located using ticker SP500-45, and includes companies engaged in the development, manufacturing, and distribution of technology products and services, ranging from hardware and software to semiconductors and IT services.
S&P 500 Information Technology Index Price & Chart
The tech sector is often considered the growth engine for the economy, driven by innovation and rapid advancements in areas such as cloud computing, artificial intelligence, and cybersecurity.
The index features some of the world’s largest and most influential tech companies, including Apple, Microsoft, and Nvidia. As of early 2025, there are 69 constituents in the index.
SP500-45 Performance Over The Years
As you can see below, the S&P 500 Information Technology Index has delivered strong returns over the years, reflecting the sector’s pivotal role in driving economic and technological progress. Here is its performance over the years:
| Period (To Early 2025) | Total Return |
|---|---|
| 1-Year Return | +38.34% |
| 3-Year Return | +16.74% |
| 5-Year Return | +23.06% |
| 10-Year Return | +20.95% |
S&P 500 Information Technology Top 10 Companies
| Company | Market Cap |
|---|---|
| Apple | |
| Nvidia | |
| Microsoft | |
| Broadcom | |
| Salesforce | |
| Oracle | |
| Cisco Systems | |
| Accenture | |
| ServiceNow | |
| IBM |
Sector Forecast
The Bull Argument: According to Fidelity sector portfolio manager Adam Benjamin, the outlook for the sector in 2025 and beyond “may be bright,” with tech companies continuing to innovate and digitisation and automation becoming increasingly important.
Benjamin adds that he believes “we are still in the ‘picks and shovels’ phase of generative AI,” and the next phase of development could present opportunities for software firms. “I believe there could be attractive potential in the year ahead for these “non-AI-winner” chip makers,” he wrote. “One catalyst for this could be a coming AI-driven product-upgrade cycle, as AI adoption begins to reach across all technology devices and end markets. Any lift to the general economic environment, perhaps aided by lower interest rates, could help as well.”
The Bear Argument: Steven Jon Kaplan, the True Contrarian blog and newsletter’s chief executive, said recently that he believes tech stocks will experience a decline “sometime in 2025.” Kaplan notes that there are worries regarding overpriced expectations for company profits and mounting evidence that artificial intelligence spending from big tech companies hasn’t turned into large profits. He is also said to have highlighted insider selling at information technology companies such as Nvidia, Microsoft, and Apple.
Our View: Despite the bearish arguments, it is hard to ignore the returns from tech stocks over the years. The S&P 500 Information Technology Index offers investors focused exposure to one of the most dynamic and influential sectors of the economy and some of the biggest names. Of course, while it presents opportunities for substantial growth, it also comes with heightened volatility and risks. Nevertheless, there are still many names that investors are bullish on for 2025.
Who Should Invest in the S&P 500 Information Technology?
For those interested in the sector, the 1nvest S&P500 Info Tech Feeder ETF is listed on the S&P Global website as an index-linked product for investors. In addition, investors may also consider the iShares U.S. Technology ETF and the Invesco QQQ Trust. These are popular funds that provide exposure to the information technology sector.
Certain types of investors may be better suited to the sector. The characteristics required may include:
Growth-focus: Investors looking for high potential returns and willing to accept greater volatility may prefer investing in the sector.
Tech enthusiasm: Of course, those who have a strong belief in the future of technological innovation and want to be part of the sector’s growth, including in industries such as artificial intelligence and cloud computing, will find the index and ETFs in the sector attractive.
Long-term investment timeframe: Finally, investors may find it more suitable to have long-term growth prospects to allow the development of certain technologies to play out. As a result, it may be more appealing for those with a longer investment horizon.
