Over the last 10 years, the winner in raw returns has been technology-focused funds, followed by the S&P 500, and then the MSCI World Index. But the important part is understanding why — and whether the higher returns were worth the extra concentration risk.
Here’s the practical comparison for a Singapore investor using platforms like Endowus.
| Category | Technology Funds (via Endowus) | S&P 500 Index Funds | MSCI World Index Funds |
|---|---|---|---|
| Typical Funds | BlackRock World Technology Fund | iShares / Amundi Prime USA | Amundi / iShares Developed World |
| 10-Year Annualised Return | ~20%–24% | ~12%–14% | ~8%–11% |
| Main Driver | AI, cloud, semiconductors, big tech | US economic dominance | Global diversification |
| Risk Level | Very high | Medium-high | Medium |
| Diversification | Low | Moderate | High |
| Worst Drawdown | Severe | Moderate | Lower |
| Main Countries | Mostly US tech | US | US + Europe + Japan |
| Best For | Aggressive growth | Long-term wealth building | Stability + diversification |
Technology funds dramatically outperformed over the past decade. The BlackRock posted around 20%+ annualised returns over 10 years.
By comparison:
- S&P 500 returned roughly 12%–14% annualised over the same period.
- MSCI World returned roughly 8%–11% annualised.
A major reason is the extraordinary performance of US technology giants such as NVIDIA, Microsoft, Apple, Amazon, and Meta.
Here’s the rough growth of a hypothetical USD$10,000 invested 10 years ago:
| Investment | Approximate Value Today |
|---|---|
| Technology Fund | ~$60,000–$90,000 |
| S&P 500 | ~$32,000–$38,000 |
| MSCI World | ~$22,000–$28,000 |
The downside is volatility.
In 2022:
- Many technology funds fell 30%–45%
- S&P 500 fell around 18%
- MSCI World declined less due to diversification
That is the tradeoff:
- Higher concentration = higher returns and deeper crashes
- Broader diversification = smoother ride but slower wealth accumulation
For Singapore investors specifically:
1. Endowus Technology Funds
These are suitable if:
- You still have 15–20 years before retirement
- You can emotionally tolerate large swings
- You want maximum growth exposure
Popular tech-oriented options on Endowus include:
- BlackRock World Technology Fund
- Allianz Global Artificial Intelligence
- Franklin Technology Fund
These are actively managed and usually carry higher fees.
2. S&P 500 Funds
This is the middle ground.
The S&P 500 has been one of the strongest wealth-building indexes globally because the US dominates:
- AI
- Cloud computing
- Software
- Semiconductors
- Digital advertising
Many Singapore investors use:
- Amundi Prime USA
- LionGlobal Infinity US 500
- iShares US Index Fund
The advantage:
- Strong growth
- Lower fees
- Less concentrated than pure tech
3. MSCI World Funds
This is the “sleep well at night” option.
You get exposure to:
- US
- Europe
- Japan
- Developed markets globally
Returns are usually lower because:
- Europe grows slower
- Japan has weaker demographics
- Less tech concentration
But diversification reduces risk.
Common Endowus choices:
- Amundi MSCI World
- iShares Developed World Index Fund
A lot of long-term CPF and SRS investors in Singapore prefer this approach because it is simple and diversified.
Community sentiment among Singapore investors is fairly consistent:
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r/singaporefi
›
When it comes to trust fund or ETF, the answer is always the one with the lowest cost that track the widest market.
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r/singaporefi
›
diversified and low cost: Amundi MSCI World. S&P500-like: Amundi Prime USA.
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r/singaporefi
›
it is better to invest in a broad market index ETF rather than some robo advisor.
For your situation — age 48, investing regularly, aiming for financial freedom and retirement income — the strongest balance is usually:
- 60–80% S&P 500 or MSCI World
- 20–40% technology funds
That gives you:
- Core stability
- Exposure to AI and tech growth
- Lower risk than going 100% tech
If you go 100% technology funds now, you must be mentally prepared for a possible 40%–50% portfolio drop during a tech crash.
A practical long-term allocation could look like:
| Portfolio Type | Suggested Mix |
|---|---|
| Conservative Growth | 80% MSCI World + 20% Tech |
| Balanced Growth | 70% S&P 500 + 30% Tech |
| Aggressive Growth | 60% S&P 500 + 40% Tech |
| Maximum Growth | 100% Tech |
The strongest risk-adjusted strategy for most people is usually not “all tech.” It is combining a broad index with selected technology exposure.
