{"id":37140,"date":"2025-10-22T14:58:58","date_gmt":"2025-10-22T14:58:58","guid":{"rendered":"https:\/\/financialrush.com\/?p=37140"},"modified":"2025-10-22T14:58:58","modified_gmt":"2025-10-22T14:58:58","slug":"your-portfolio-may-be-more-tech-heavy-than-you-think","status":"publish","type":"post","link":"https:\/\/financialrush.com\/?p=37140","title":{"rendered":"Your portfolio may be more tech-heavy than you think"},"content":{"rendered":"<p> \n<\/p>\n<div id=\"SpecialReportArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"group\">\n<p>If you own <a href=\"https:\/\/www.cnbc.com\/2025\/10\/07\/sp-500-where-to-invest-in-case-of-a-pullback.html\">an S&P 500 index fund<\/a>, artificial intelligence is already a major part of your investment strategy.<\/p>\n<p>In recent years, the stock market\u2019s gains <a href=\"https:\/\/www.cnbc.com\/2025\/08\/26\/sp-500-index-diversify.html\">have been fueled<\/a> largely by a small group of tech giants that are aggressively investing in AI.<\/p>\n<p><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-3\"><a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\">Nvidia<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-4\"><a href=\"https:\/\/www.cnbc.com\/quotes\/MSFT\/\">Microsoft<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-5\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AAPL\/\">Apple<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span>, Google parent company <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-6\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GOOGL\/\">Alphabet<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"SpecialReportArticle-QuoteInBody-7\"><a href=\"https:\/\/www.cnbc.com\/quotes\/AMZN\/\">Amazon<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> \u2014 the five biggest names in the S&P 500 \u2014 now represent nearly 30% of the entire index. And that concentration is reshaping the way investors experience diversification.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"SpecialReportArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 id=\"more-from-etf-strategist\" class=\"RelatedContent-header\">More from ETF Strategist:<\/h2>\n<div class=\"group\">\n<p>Here\u2019s a look at other stories offering insight on ETFs for investors.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>\u201cMany people aren\u2019t aware how their retirement portfolio performance or taxable account portfolio performance is really dependent upon the success of these five companies,\u201d said certified financial planner Kamila Elliott, CEO of wealth management firm Collective Wealth Partners in Atlanta. She is also a member of the CNBC <a href=\"https:\/\/www.cnbc.com\/advisor-council\/\">Financial Advisor Council<\/a>.<\/p>\n<\/div>\n<h2 id=\"set-it-and-forget-it-strategy-is-no-longer-applicable\" class=\"ArticleBody-subtitle\"><a id=\"headline0\"\/>\u2018Set-it-and-forget-it\u2019 strategy is \u2018no longer applicable\u2019<\/h2>\n<div class=\"group\">\n<p>For decades, investing in exchange-traded funds or mutual funds that follow the S&P 500 was seen as <a href=\"https:\/\/www.cnbc.com\/2025\/10\/02\/sp-500-set-it-and-forget-it-strategy.html\">a relatively low-risk way<\/a> to grow wealth over time. Market legends like <a href=\"https:\/\/www.cnbc.com\/2024\/10\/09\/warren-buffetts-sp-500-bet-paid-off-some-experts-say-it-may-be-time-to-diversify.html\">Warren Buffett<\/a> and Vanguard founder <a href=\"https:\/\/www.cnbc.com\/2019\/01\/17\/its-easy-to-be-an-index-investor-like-jack-bogle-heres-how-ton-do-it.html\">Jack Bogle<\/a> famously endorsed \u201cset-it-and-forget-it\u201d strategies using low-cost index funds.<\/p>\n<p>But that approach may not be as diversified as it once was.<\/p>\n<p>\u201cI think \u2018set-it-and-forget-it\u2019 is no longer as applicable,\u201d said Elliott. \u201cIf your entire portfolio for retirement is in the S&P 500, regardless of what\u2019s happening in the AI market, it really isn\u2019t well diversified.\u201d<\/p>\n<\/div>\n<div class=\"group\">\n<p>\u201cThe S&P 500 is still diverse for sure,\u201d said CNBC FA Council member John Mullen, president and CEO of Parsons Capital Management in Providence, Rhode Island. The firm ranked No. 1 on CNBC\u2019s <a href=\"https:\/\/www.cnbc.com\/2025\/10\/01\/best-financial-advisors.html\">Financial Advisor 100<\/a> list for 2025.<\/p>\n<p>\u201cYou still have 500 names that make up the index,\u201d he said. \u201cIt is, however, much more concentrated than it has been throughout most of its history.\u201d<\/p>\n<p>That shift is largely due to the index\u2019s structure. The S&P 500 is market-cap weighted, meaning companies with larger valuations carry more influence over the index\u2019s performance. As stock prices for AI-linked companies soar, their market caps grow.<\/p>\n<p>While some strategists see that trend as a potential risk to investors, others view it as an opportunity.<\/p>\n<p>\u201cI think tech continues to lead the market higher and that ultimately has really changed the game for investors,\u201d said Dan Ives, managing director at Wedbush Securities.<\/p>\n<p>\u201cWe\u2019re living in a fourth industrial revolution, and I think the market is starting to reflect that,\u201d Ives added. \u201cIt\u2019s an exciting time to be an investor in US tech.\u201d<\/p>\n<p><strong>Watch the <\/strong><a href=\"https:\/\/www.cnbc.com\/video\/2025\/10\/22\/ai-stocks-are-driving-the-sp-500-heres-how-it-affects-your-portfolio.html\"><strong>video<\/strong><\/a><strong> above to learn how to navigate the S&P 500\u2019s historic concentration in AI stocks and how you can diversify your portfolio.<\/strong><\/p>\n<\/div>\n<\/div>\n\n<br \/><a href=\"https:\/\/www.cnbc.com\/2025\/10\/22\/your-portfolio-may-be-more-tech-heavy-than-you-think.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"If you own an S&#038;P 500 index fund, artificial intelligence is already a major part of your investment&hellip;\n","protected":false},"author":3,"featured_media":37141,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-37140","post","type-post","status-publish","format-standard","has-post-thumbnail","category-investing","cs-entry","cs-video-wrap"],"_links":{"self":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37140"}],"version-history":[{"count":0,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/posts\/37140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=\/wp\/v2\/media\/37141"}],"wp:attachment":[{"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialrush.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}