DXC Technology vs. S&P 500: A Real Investment Story of Diverging Paths
Summary: If you’re looking for a clear, real-life rundown of how DXC Technology’s stock (DXC) has stacked up versus the S&P 500 over the past five years, you’ll find this post both brutally honest and packed with firsthand insights, screen grabs, expert quotes, and even a dash of a real “messy mishap” from an investor’s point of view. For those eyeing either DXC or the S&P 500—or just trying to figure out why their portfolio looks the way it does—let’s break it down step by step.
Can We Really Just Compare? Yes, and Here’s Why You Need To
A lot of new investors ask me: “Isn’t any big tech stock bound to ride the same wave as the big US index?” Turns out, that’s wishful thinking, especially if you’ve had any money in DXC Technology. I’ve put money into both the S&P 500 (via SPY) and DXC. To my dismay (and wallet), their paths could not have been more different.
Let’s work right through my actual steps—warts, confused clicks, and all.
My Step-By-Step DIY Comparison (With Screenshots)
Step 1: Getting the Historical Data
I started with Yahoo Finance, my usual go-to (DXC page, S&P 500 page), because it’s simple, fast, and lets me use the chart “Compare” tool. You just plug in the ticker (DXC for DXC Technology, ^GSPC for S&P 500). Set the time frame—five years in this case.
I wish I could say I got it right the first time, but, in classic fashion, I clicked the wrong start date and had to reset twice. That aside, it gave me this chart (screenshot from Yahoo Finance below):
Screenshot: Yahoo Finance, 5-year total return chart, June 2019 to June 2024, DXC in blue, S&P 500 in orange (source)
Step 2: Crunching the Numbers (Total Return!)
Okay, here’s the kicker: most people just look at the price line, but total return matters—meaning, did dividends help out?
- DXC’s five-year total return (June 2019–June 2024): about -41% (yes, negative forty-one percent)
- S&P 500 (SPY ETF proxy): about +85%
These results come directly from Morningstar’s performance tab (DXC, SPY).
“It’s just staggering,” said Steve at the Serious Investor Forums, “how a stock that once felt like a safe services bet could bleed value while the index soared.”
I’ve gotten burned myself. Bought 100 DXC shares in late 2018 after a bullish analyst note, only to watch them drop, then halve again during March 2020... and they’ve never come close to the index since. Meanwhile, my boring S&P 500 ETF quietly ticked higher. Sometimes ‘set and forget’ is the best policy.
What’s Behind the Divergence?
It may sound like DXC is cursed, but the reality is starker. While the S&P 500 benefited from the explosive growth of tech giants (think: Apple, Microsoft, Nvidia), DXC—an IT services company spun off from HP—struggled with declining sales, high debt, and intense competition. Every quarterly result seemed like yet another “restructuring” or disappointing guidance.
- Key News Timeline:
- March 2020: Pandemic hits—index dips but bounces; DXC falls off a cliff. (Reuters coverage)
- 2021–2023: S&P 500 leads with Big Tech gains; DXC barely treads water, constant layoffs, leadership changes (Barron’s)
- 2024: DXC still floundering, multiple acquisition rumors but no deal (The Street)
Meanwhile, most S&P 500 investors probably didn’t even notice, as the index set fresh highs.
Expert Take: It’s Not Always ‘Tech Wins’
“When people lump ‘tech’ stocks together, they miss real risk. Index investing smooths out those company blow-ups,” said Lina Moretti, CFA, interviewed on CNBC last year.
Her point underscores what Investor.gov says: diversification usually outperforms stock-picking, especially in highly competitive industries.
A Fun (Painful) Portfolio Check Example
Say you invested $10,000 in DXC five years ago (June 2019). Today, you’d be left with about $5,900. If you put the same in the S&P 500 index, you’d have over $18,500. Quite a gulf.
Source: Portfolio Visualizer (simulated, link)
But Is All Lost for DXC?
To be fair to DXC—and this is a feeling echoed in the SeekingAlpha DXC forums—sometimes a beaten-up stock does eventually turn. The company’s repeated cost-cutting and hints at possible acquisition bids create periodic spikes. But as a five-year hold, it’s lagged, and the market clearly favored the index approach.
Comparison Table: DXC vs S&P 500 (2019–2024)
| Metric | DXC Technology | S&P 500 Index (SPY) |
|---|---|---|
| Total Return 5Y | -41% | +85% |
| Annualized Return | -10.3% | +13.1% |
| Dividend Yield | 0% | 1.3% (Varies) |
| Volatility (Annualized StDev) | 30%+ | ~17% |
| Key Risks | Business turnaround, competition, no dividend | Broadly diversified across sectors |
| Legal/Index Inclusion | S&P 500 stock 2017–2021, removed 2021 | Remains benchmark US equity index |
What’s Official: SEC, S&P Global, and Market Standards
DXC’s reporting follows SEC requirements (see latest annual report), while S&P 500 rules on index inclusion are laid out by S&P Global (S&P Index Methodology). Trust me—if DXC wants back in the index, it’ll need steady profitability, not just occasional headlines.
International Angle: “Verified Trade” Standards Comparison Table
If your curiosity extends to how global standards vary (and why it’s so important for multi-listing, like DXC once was considered for FTSE or other indexes), here’s a “trade verification” quick-compare:
| Country/Region | Verified Trade Standard | Legal Basis | Enforcement Agency |
|---|---|---|---|
| USA | Rule 17a-3/4 (SEC) | Securities Exchange Act | SEC, FINRA |
| EU | MiFID II transparency regime | Directive 2014/65/EU | ESMA, national regulators |
| Japan | Financial Instruments and Exchange Act | Act No. 25 of 1948 | JFSA |
| Australia | ASIC Market Integrity Rules | Corporations Act 2001 | ASIC |
| WTO (Global Trade) | Trade Facilitation Agreement Art. 10 | WTO Agreements | WTO Members |
Case in Point: A Tale of Two Stocks (DXC vs. Unilever, FTSE100)
Picture a US-based pension fund that wants both “global IT exposure” (DXC) and “global consumer staples” (Unilever PLC, listed in London). Their compliance team is tripped up because SEC requires continuous, verified book-entry and public filings, while UK law only mandates biannual disclosures. Portfolio risks creep in with mismatched standards, a subject noted in the FCA’s 2021 guidance (“FG21/1”, section 5.2).
This is part of why international indices like the S&P 500 tend to set the bar higher for entry and ongoing compliance, and why “verified trade” matters not just for legal compliance, but for investor confidence, too.
Hearing from the Field: Analyst Maria Tang’s Take
“As someone who analyses both US and EU stocks, I tell clients: always check what ‘Audited’ really means. You’d be shocked how standards and enforcement differ country by country.”
Her advice saved me at least twice, when I almost bought an overseas stock based on headlines—without checking if their home market even enforced timely disclosures.
Conclusion: What This All Means (& Next Steps)
Bottom line, if you’d simply bought the S&P 500 over the past five years, you would have outperformed DXC Technology by a wide margin, with less stress and more sleep. The story isn’t unique: individual “sleepy” tech stocks sometimes lose ground to the juggernaut pace of the index. And when trading across borders, always mind the verification standards—they might not match US rigor, and that can get you into trouble if you’re not careful.
So, what’s next? If you’re doing portfolio clean-up, check each holding’s actual five-year total return (Morningstar or Portfolio Visualizer work wonders), double-check compliance on foreign stocks, and, if you’re still tempted by DXC, make sure you’re comfortable with deep company dives—not just headline scanning.
For more on trading regulations, check the USTR, OECD Trade standards, or WCO for cross-border comparison tools. And don’t forget—sometimes the “boring” index funds really do save you from years of regret.