Mega-cap stock exposure in the S&P 500® index has reached 35-year highs, underscoring the need to ensure that your clients are properly diversified.

 Key takeaways:

• The largest 10 stocks in the S&P 500 index recently accounted for approximately 40% of its market capitalization. That’s more than when the dot-com bubble burst in March 2000.¹
• Given this backdrop, are your clients properly diversified? If not, consider exploring Fundamental Index® strategies. These strategies weight firms based on measures like cash flow, dividends, and revenue.
• By breaking the link between stock price and index weight, Fundamental Index strategies can complement traditional cap-weighted strategies and enhance portfolio diversification.