- Apple, Amazon, the Alphabets, and Microsoft together make up an outsized percentage of the total weight of the major market cap weighted large cap ETFs including the market proxy, S&P 500.
- We quantify their impact on some of the largest ETFs and Funds.
- We look at their current prices, past and forecast earnings growth rates to see how much of a thread their current valuation might pose to investors' who currently own them.
- Meta provides a good example of what happens to a seemingly well valued top stock like these four if they disappoint investors.
- ETF investors who don't follow individual stocks are most at risk for losses if they aren't aware of the role these stocks play in their portfolios.
For further details see:
4 Dangerously Valued Mega Cap Stocks May Determine The Future Of Your Market Cap Weighted ETFs