The article warns that high index concentration may leave investors less diversified than they think: the 10 largest S&P 500 companies make up over 39% of the index, nine of them in tech or tech-adjacent sectors, and the top 10 TSX names about 38%. A Picton Investments survey found 83% of Canadian investors feel diversified, but only 57% understand index concentration. S&P Global data show 67% of active US large-cap funds trailed the S&P 500 in the first half of 2026 and 89% over five years, while over 40% of S&P 500 components have fallen this year. Expected AI capital spending of US$800 billion this year and US$1 trillion next year has powered markets higher, though Benjamin Felix of PWL Capital says concentration has had a very slightly negative, statistically insignificant link to future US returns. The article cites Nortel, which once made up more than a third of the Canadian market before its 2009 collapse, noting the Canadian market outperformed the US through the tech crash and lost decade that followed.
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Related tickers and likely impact
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/20/2026 | 717.63 |
| Change that session | -0.10% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/20/2026 | 769.05 |
| Change that session | +0.34% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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