The S&P 500 looks diversified—until you see how few stocks actually drive the returns. As concentration rises, index construction itself is becoming a growing 401k fiduciary risk.
Tag "S&P 500"
Awful returns suggest investors should have shunned equities during the century’s first decade. Or do they? A closer examination reveals a surprising conclusion, one that might upset the fastest growing segment of the financial industry.
If the evolution of indexing over the decades tells us anything, it tells us today’s budding index products “are not your father’s” index.
