SPDR S&P 500 Outpaces Microsoft by Over 30% in Seven Months
SPDR S&P 500 ETF Trust has outperformed Microsoft by more than 30% since August 2025, marking a seven-month winning streak with a 6% February lead. The fund’s outperformance contrasts with Microsoft’s 17% year-to-date decline, the worst among the Magnificent Seven.
1. SPY's Outperformance vs Microsoft
Since early August 2025, the SPDR S&P 500 ETF Trust has outpaced Microsoft by more than 30%, marking an unprecedented seven-month winning streak against the software giant. SPY’s broad basket of 500 large-cap U.S. stocks has offset Microsoft’s 17% year-to-date decline with gains in other sectors.
2. SPY Composition and Sector Drivers
Microsoft remains one of SPY’s top holdings by market capitalization, but its underperformance has been counterbalanced by stronger returns in financials, energy and health care. The ETF’s diversified sector weights have allowed gains in cyclicals to outweigh tech sector headwinds.
3. Investor Implications
The widening gap between SPY and Microsoft highlights the benefit of diversified exposure amid stock-specific weakness. Investors may consider whether SPY’s broad market coverage continues to provide resilience if major tech names face ongoing earnings or growth challenges.