About 38 cents of every dollar in an S&P 500 index fund now sits in just ten companies, and most of them are riding the same AI spending wave. That alone isn’t a reason to sell anything. The real concentration risk usually isn’t the index fund. It’s everything you stacked on top of it.
The index didn’t change. The market did.
An S&P 500 fund doesn’t pick winners. It owns every company in proportion to its size. When a handful of companies get enormous, the fund gets concentrated automatically, no decision required.
