The S&P 500 is top-heavy with tech

 The S&P 500 SPX is up more than 7% so far in 2023, after last year’s 19.4% slide. 

The top 10 stocks hold a 29% weight in the index, and are responsible for around 70% of year-to-date performance

Concentrated leadership is far from unusual. In fact, it’s hard to avoid in an index that’s weighted according to market capitalization 

MarketWatch 12 May 2023

 It is important to remember the difference between capitalization-weighted indices such as the S&P 500 Index (SPX) and price-weighted indices like the Dow Jones Industrial Average (DJIA). 

While a cap-weighted index derives its performance from the movement of the underlying holdings multiplied by their respective allocations as determined by market cap, 

the Dow Jones Industrial Average is a price-weighted index, which simply means that stocks with the highest share price receive the greatest weighting in the index.,price%20receive%20the%20greatest%20weighting%20in%20the%20index.


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