Tag Archives: Concentration Risk
The Taiwan Paradox: Balancing Concentration Risk with Global Diversification
Few economies are as deeply embedded in the global technology supply chain as Taiwan. Its highly sophisticated chip manufacturing network benefits from demand across a broad range of high-value end markets, from AI infrastructure and data centers to smartphones and electric vehicles. This positioning has propelled the S&P Taiwan BMI to an average annualized gain…
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Addressing Concentration with the S&P 500 3% Capped Index
Concentration within the S&P 500® has risen sharply in recent years, reaching multi-decade highs (see Exhibit 1) and reflecting broader trends in the U.S. large-cap equity market. As a result, more market participants are actively seeking ways to mitigate concentration risk. The S&P 500 3% Capped Index offers a practical approach by applying a straightforward…
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Lessons from 20 Years of Equal Weight
How has equal-weight compared with cap-weight historically? S&P DJI’s Hamish Preston and Invesco’s Nick Kalivas explore how differences in index construction have influenced index performance, sector and factor composition, and results in the latest SPIVA Scorecards.