Market Concentration Update and Action Items

About a month ago I commented on the record concentration in the top 5 names of the S&P 500.

I want to briefly follow up on that and also summarize some action items I’m taking within portfolios.

This updated chart from Charles Schwab shows that concentration in the top 5 names has now reached 22% of the entire S&P 500!

top 5 stocks weight of S&P 500

Source: Charles Schwab, Bloomberg, as of 6/30/2020. Past performance is no guarantee of future results. Continue reading “Market Concentration Update and Action Items”

The S&P 500 is More Concentrated Than Ever

The S&P 500 is now more concentrated than ever before with the largest five companies now accounting for over 21% of the entire S&P 500 (by market cap)! Those top five stocks are Microsoft, Apple, Amazon, Alphabet and Facebook.

The concentration recently surpassed the previous record from the year 2000, which amounted to approximately 19%. In 2000, the five largest stocks were Microsoft, GE, Cisco, Intel and Walmart.

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