Equal-Weight vs. Aggregate S&P 500 10-Year Trailing Relative Returns Current market conditions suggest that investors might benefit from considering an equal-weight strategy for the S&P 500, especially in light of the significant concentration observed in the index. Image: Goldman Sachs Global Investment Research
S&P 500 Volatility The concentration of large-cap stocks has significantly impacted market volatility, with these stocks accounting for a record share of it. Image: Goldman Sachs Global Investment Research
The Five Largest Stocks in the S&P 500 The concentration of the S&P 500 in the 5 largest stocks is higher than it was 60 years ago, which is considered a potential risk, as it may result in increased market volatility and a lack of diversification. Image: Bianco Research
Top 10 Stocks as % of S&P 500 In recent years, there has been a substantial rise in concentration among the top 10 companies in the S&P 500, which has raised concerns about potential risks to investors. Image: Goldman Sachs Global Investment Research
30 Largest Stocks as a Percentage of S&P 500 Market Capitalization The 30 largest stocks account for 53% of the S&P 500’s total market capitalization, raising concerns about the index’s concentration and potential risks. Image: Morgan Stanley Wealth Management
Stocks – Indexed Consensus NTM Net Income The widening gap in expected net income between mega-cap tech stocks and the bottom 493 stocks of the S&P 500 highlights the concentration risk and volatility associated with the dominance of these tech stocks in the index. Image: Goldman Sachs Global Investment Research
Total Return Performance Since First Fed Hike in March 2022 There has been a significant concentration of equity market returns following the first Fed hike in March 2022. This concentration should be considered by investors when structuring their portfolios. Image: Goldman Sachs Global Investment Research
Top Five Companies % of S&P 500 Market Capitalization The concentration of the S&P 500 in the five largest stocks remains higher than it was during the dot-com bubble, which is seen as a potential risk, as it can lead to increased market volatility and a lack of diversification. Image: BofA US Equity & Quant…
Top 5 Stocks % of S&P 500 Market Capitalization Does the current concentration of the S&P 500 in the five largest stocks suggest a potential bull trap, particularly as it is more pronounced than during the dotcom bubble? Image: BofA Global Investment Strategy
S&P 500 – Top 10 Mega Caps and Bottom 426 Stocks Is the concentration of the top 10 stocks in the S&P 500 a cause for concern in the long term? Image: Real Investment Advice
Valuation – Mega-Cap Tech Relative NTM P/E vs. Rest of S&P 500 The concentration of mega-cap tech stocks in the S&P 500 Index has raised concerns that the market is being pulled up by a handful of stocks. Image: Goldman Sachs Global Investment Research