Is the Over-concentration of the Market Becoming Inflated? Cathie Wood Points Out Two Key Factors

Ark Invest’s recent report points out that due to the superior long-term performance of large-cap tech stocks and their higher market value weightings, the Nasdaq 100 Index and the S&P 500 Index are becoming increasingly similar. Many mature companies that were considered pioneers 10 to 40 years ago are no longer at the forefront of innovation.