Concentration
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.
What it means for your portfolio
An 'Australian shares' fund is largely a bet on financials and resources.
Does this apply to your holdings?
Get a free PortLens risk snapshot — your concentration, drawdown sensitivity and more, in plain English. No signup.
Run my free snapshotMore on Concentration
The US is most of the world
The US is roughly 60-70% of global equity market capitalisation.
Index concentration is rising
In recent years a handful of mega-cap technology names have driven a large share of US index returns.
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.