Concentration
Index concentration is rising
In recent years a handful of mega-cap technology names have driven a large share of US index returns.
What it means for your portfolio
Cap-weighted 'diversified' funds can carry more single-theme risk than they appear to.
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The ASX is top-heavy
The S&P/ASX 200's top 10 companies are around 45-50% of the index, dominated by banks and miners.
The US is most of the world
The US is roughly 60-70% of global equity market capitalisation.
Overlapping ETFs
Many popular ETFs hold the same mega-caps, so stacking several often increases overlap rather than diversification.
General information only, not financial advice. Historical figures are approximate and provided for education.