CSTNL - Equities Ride The Magnificent Seven Wave - Time To Diversify?
2024-03-26 05:55:00 ET
Summary
- The Magnificent Seven make up almost 30% of the S&P 500 market capitalization and accounted for almost 60% of the index’s return in 2023.
- Much of the rally in equities can be attributed to the performance of a handful of mega-cap stocks that have come to be dubbed the Magnificent Seven.
- The difference in performance between the S&P 500 Equal Weight Index and the S&P 500 Index is frequently material, which means that it may have a potential explanatory power for the relative performance of other large-cap U.S. equity portfolios or indices.
Originally posted on March 24, 2024
By Vijay Sumon
At A Glance
- The Magnificent Seven make up almost 30% of the S&P 500 market capitalization and accounted for almost 60% of the index's return in 2023
- Equal Weight Index futures enable investors to trade the market breadth, allowing for more diversification and less concentration