The Nasdaq Composite is heavily weighted toward the technology sector, and that tends to make the index volatile. For instance, the Nasdaq is currently 31% off its high, while the broad-based S&P 500 is down just 17%. Despite falling more sharply of late, the Nasdaq has easily outperformed the S&P 500 over the past decade because it includes many innovative and potentially disruptive companies, and those companies can create tremendous value for patient shareholders.