Apollo Asset Management: The diversification of the S&P 500 is in name only, with the top ten weighted stocks likely to dominate in the future.

Apollo Global Management Inc analyst Tobias Stroock noted that the increasing concentration of mega-cap public companies is reshaping the composition of the Standard & Poor's 500 Index. Stroock pointed out that the top 10 companies in the index now account for nearly 40% of its total weight, highlighting that a small number of companies are increasingly dominating market performance. Stroock added that this concentration could further increase in the coming years. He suggested that if large private companies such as Anthropic, OpenAI, and SpaceX eventually go public and are included in the benchmark index, the weight of the top 10 stocks could approach 50%. Stroock said, "The bottom line is that the Standard & Poor's 500 Index is basically no longer offering as much diversification." A similar pattern is also clearly visible in the SPDR S&P 500 ETF Trust (SPY), where the top 10 holdings currently represent approximately 36.35% of the total portfolio weight. Here are the details of the top 10 holdings in SPY: - NVIDIA Corporation (NVDA.US) weight 7.31% - Apple Inc. (AAPL.US.US) weight 6.63% - Microsoft Corporation (MSFT.US.US) weight 4.96% - Amazon.com, Inc. (AMZN.US) weight 3.47% - Alphabet Class A (GOOGL.US) weight 3.08% - Broadcom Inc. (AVGO.US) weight 2.56% - Alphabet Class C (GOOG.US) weight 2.46% - Meta Platforms (META.US) weight 2.40% - Tesla, Inc. (TSLA.US) weight 1.92% - Berkshire Hathaway (BRK.B.US) weight 1.57%