Reported 2 days ago
The dominance of a few major tech companies in the S&P 500, which now account for nearly 40% of the index, presents difficulties for exchange-traded funds (ETFs) aiming to replicate it. The historical rules for investment companies limit how much of the index can be represented by single stocks, resulting in passive ETFs underperforming relative to the actual market. New ETFs are emerging that seek to balance compliance with these rules while getting closer to the index's concentration, albeit with higher management fees.
Source: YAHOO