From Morningstar: 2024-06-04 06:09:00

The US stock market is highly concentrated in a few tech stocks, causing concerns about lack of diversification. However, data from Vanguard shows only 1.3% of 401(k) participants invest in a single equity fund. While top companies have increased profits share recently, historical data indicates similar patterns decades ago. Despite beliefs, concentrated markets may not necessarily be riskier.



Read more at Morningstar: Is The US Stock Market Too Concentrated?