“Too Much Tech” – The Growing Peril Of Passive Investing

“Too much of a good thing…” – That’s the message that many passive investors are unknowingly dealing with as they approach the year-end.
In 2012, FANG Stocks (Facebook, Amazon, Netflix, and Google) accounted for less than 3% of the market cap of the S&P 500.
At the end of 2017, those four stocks now account for over 8% of the S&P’s market cap…
And, as WSJ reports, this is not limited to a small handful of stocks, it is worldwide – investors who loaded up on U. S. and Asian stock-index funds might be surprised to learn just what they own now: technology stocks – a lot of them.
Led by Apple Inc., Facebook Inc. and their peers, the weighing of technology stocks in the S&P 500 index has climbed to 23.8% as of Dec. 26, from 20.8% at the end of last year, according to S&P Dow Jones Indices.

This post was published at Zero Hedge on Thu, 12/28/2017 –.

 

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