Concentrate on Small-Caps to Avoid Concentration Risk

An oft-mentioned criticism of cap-weighted ETFs — mainly those dedicated to large-cap equities — is that when stocks rally, concentration risk in those funds can increase. 2023 has seen the “Magnificent Seven” group mega-cap growth stocks surge. Concentration levels in some supposedly diverse equity benchmarks, and thus the corresponding index funds and ETFs, are high. [...] The post Concentrate on Small-Caps to Avoid Concentration Risk appeared first on ETF Trends .