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Giving everyone their fair share just got more popular.
Fears of an AI bubble and high levels of market concentration may be sending investors to more diversified options. Earlier this month, Invesco's S&P 500 Equal Weight ETF (RSP) surpassed $100 billion in ****** ets under management and has brought in more than $12 billion this year alone, per a CNBC report. RSP and other equal-weight funds give the same value to each of their underlying stocks rather than mirroring an index. To investors, they can represent a welcome reprieve from the S&P 500, which derives around a third of its value from the tech sector alone. The trend could signal a change in how investors think about the role that S&P 500 funds play in a portfolio.
"Right now, we've got the Mag Seven about 34% of the total S&P 500 index, which is at historic levels," said Don Cody, CEO at Global Macro ****** et Management. "I think [equal-weight fund popularity is] largely fear and concern that we're overweighted in areas that are obviously the drivers of the market."
Sign up for The Daily Upside at no cost for premium ****** ysis on all your favorite stocks.
#levels
Giving everyone their fair share just got more popular.
Fears of an AI bubble and high levels of market concentration may be sending investors to more diversified options. Earlier this month, Invesco's S&P 500 Equal Weight ETF (RSP) surpassed $100 billion in ****** ets under management and has brought in more than $12 billion this year alone, per a CNBC report. RSP and other equal-weight funds give the same value to each of their underlying stocks rather than mirroring an index. To investors, they can represent a welcome reprieve from the S&P 500, which derives around a third of its value from the tech sector alone. The trend could signal a change in how investors think about the role that S&P 500 funds play in a portfolio.
"Right now, we've got the Mag Seven about 34% of the total S&P 500 index, which is at historic levels," said Don Cody, CEO at Global Macro ****** et Management. "I think [equal-weight fund popularity is] largely fear and concern that we're overweighted in areas that are obviously the drivers of the market."
Sign up for The Daily Upside at no cost for premium ****** ysis on all your favorite stocks.
#levels
20 days ago
