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TMX VettaFi discusses market concentration risks in broad equity benchmarks
The webinar said the Magnificent Seven make up about 35% of the S&P 500 and have a combined market cap above $20 trillion.
ETF Trends covered a recent TMX VettaFi webcast focused on rising market concentration risk inside broad equity benchmarks.
During the session, TMX VettaFi research and distribution leaders said 43% of attendees viewed market concentration as the biggest risk to investor portfolios in the current environment, and they argued nonmarket-cap-weighted approaches can help restore diversification.
The webcast speakers pointed to how concentration has reached historic levels, noting the Magnificent Seven account for roughly 35% of the S&P 500 and together carry a market cap exceeding $20 trillion.
They also compared that scale to other markets, saying the Magnificent Seven total market cap is larger than every national stock market outside the U.S. combined.
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