The Great Diversification: Why Investors Are Fleeing the Index Funds The recent surge in popularity of equal weight funds is a telling sign that investors are growing increasingly uneasy about the market's concentration problem.
Tech giants like Apple and Amazon dominate the S&P 500, leaving many to wonder if this dominance will continue. One reason for the shift towards equal weight funds is their more diversified approach to investing.
Unlike traditional index funds, which give heavy weights to top performing stocks, equal weight funds assign an equal value to each underlying stock.