Index Concentration Risk

Dated events

1. March 10, 2000 · Nasdaq closes at its dot-com peak of 5,048.62 as tech stocks dominate indexes
   A small number of internet and technology companies had grown so large that tech stocks made up about a third of the S&P 500, and the five biggest companies alone were almost a fifth of it. When these companies' prices stopped climbing and started falling, the entire index fell with them, even though most other companies were doing fine.
2. Aug. 19, 2020 · Apple hits $2 trillion as five tech giants reach a record ~23% of the S&P 500
   Five giant technology companies (Apple, Microsoft, Amazon, Facebook and Google's parent Alphabet) had become so valuable that they made up nearly 23% of the S&P 500 index, a record. This meant that moves in just these five companies had a big say in whether the entire index went up or down.
3. June 18, 2024 · Nvidia passes Microsoft to become the world's most valuable company
   Chip maker Nvidia briefly became the world's most valuable company, worth about $3.3 trillion, as a small group of artificial intelligence-related companies drove much of the stock market's gains in 2024. This meant that broad stock funds were less diversified than their names suggested, since their performance depended heavily on just a few companies.

Assets named in this scenario · 5

Apple Inc.Invesco QQQ Trust (Nasdaq-100)iShares MSCI ACWI ETFMicrosoftSPDR S&P 500 ETF Trust

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Oct. 7, 2026