It’s a Concentrated World

The top 10 stocks in the S&P 500 make up almost 40% of the index. Each of the companies in the top 10 sport a market cap of $1 trillion or more. In fact, as of this writing, the 12 biggest companies all have market caps of $1 trillion or more.1 As recently at 2015, the top 10 made up just 17% of the S&P 500. This feels like a scary proposition for index investors because it feels like the fate of your performance ...