CHART OF THE DAY: The US stock market is almost 5x larger than the next biggest market

• The US stock market is the biggest in the world by a longshot, according to Goldman Sachs.
• US stocks have a combined market value of nearly $50 trillion, which is almost five times larger than the next biggest market.
• The US stock market has grown by over 250% in the last 20 years, led by the tech sector.

Our Chart of the Day is from Goldman Sachs, which shows that the US stock market is the largest in the world by a long shot.

With a combined market value of nearly $50 trillion, the US stock market is nearly five times larger than the second biggest, mainland China's. The next three biggest stock markets are Japan's, Hong Kong's, and India's, according to the chart.

US supremacy in equities was on display earlier this year, when British chip giant Arm chose to list in New York instead of London for its blockbuster IPO in September.

Goldman Sachs also noted that the US stock market has seen the most growth over the past 20 years, rising 250%. In the early 2000s, it had a value closer to $15 trillion.

Much of the growth in the US stock market over the past two decades has been driven by constant innovation in the technology sector. And that's what separates the US stock market from most others, as it has the largest exposure to tech. 

For instance, the tech sector makes up 28% of the S&P 500. Meanwhile, Japan has the second largest tech exposure at 13% of their stock market, while the MSCI Europe index has just 7% exposure, according to Goldman Sachs. 

"The US has a long history of innovation, ranking second in global innovation, up from number five in 2013," Goldman Sachs said. Switzerland is ranked as the top innovator according to the Global Innovation Index.