By James T. Tierney, Jr.
US growth companies led the second-quarter rebound, fueled by the five largest technology and new media stocks, which now comprise more than a third of the Russell 1000 Growth Index (R1000G). Investors should be alert to the risks of high benchmark concentration.
By the end of June, Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet Inc. (Google) (GOOGL) (GOOG) and Facebook (FB) made up nearly 37% of the R1000G. That's the highest absolute concentration this index has ever seen.
Giants Don't Dominate Forever
Turnover at the top has been frequent. Yesterday's