The Risks of Index Concentration in Today’s Markets

Published: 03/11/2020

Quantitative Insight +
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New Thinking

The success of Big Tech firms in recent years has been a leading factor for the strong return performance of equity market indexes, such as the S&P 500. However, the ongoing phenomenal growth of these companies also affords them an outsized influence on the long-term performance of equity markets, resulting in equity market indices that are increasingly impacted by their ongoing corporate performance.

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