Take the Concentration Risk out of the S&P 500

Wednesday, May 12, 2021

2:00 PM EDT | 11:00 AM PDT

60 minutes

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As the S&P 500 has grown ever more top-heavy, many investors in products tied to the Index have found themselves facing historic levels of concentration risk, the likes of which passive investors have not seen since 1970.  The five largest companies have grown to account for nearly 22.0% of the index, potentially leaving investors vulnerable if the companies’ current high valuations fall back to earth.  In this session, Invesco will discuss why an equal weight approach to investing in the S&P 500 may provide diversification benefits and reduce concentration risk.

In this webinar you will learn:

  • Market capitalization-weighted indexes can often result in just a few companies having an outsized influence on index performance.
  • Investors are facing levels of concentration risk not seen in nearly half a century with the S&P 500’s top five holdings growing increasingly large at nearly 22%.*
  • Investors may wish to implement an equal-weight investment approach.


For Investment Professional Use Only:

*S&P Global, as of Dec. 22, 2020.

Diversification does not guarantee a profit or eliminate the risk of loss.

The opinions expressed are those of the speakers, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions. All strategies discussed must be implemented by a financial advisor.

Invesco Distributors, Inc. is not affiliated with Advisor Perspectives.


Nick Kalivas Headshot

Nick Kalivas
Head of Factor and Core Equity Product Strategy

Nick Kalivas is a Senior Equity Strategist for Invesco's exchange-traded funds (ETFs). In his role, he works on researching and developing product-specific strategies, as well as creating thought leadership to position and promote the smart beta and factor-based equity ETF lineup.

Mr. Kalivas joined Invesco in 2014. Prior to joining the firm, he spent the majority of his career in the futures industry, delivering research, strategy, and market intelligence to institutional and high-net-worth clients in the equity and interest rate markets. He was a featured contributor for the Chicago Mercantile Exchange and provided research services to a New York- based global macro commodity trading advisor where he supplied insight on equities, fixed income, foreign exchange, and commodities. Mr. Kalivas has been quoted in The Wall Street Journal, Financial Times, Reuters, The New York Times, and by the Associated Press, and has made numerous appearances on CNBC and Bloomberg.

Mr. Kalivas earned a BBA degree in accounting and finance from the University of Wisconsin - Madison and an MBA from the University of Chicago, Booth School of Business with concentrations in economics, finance, and statistics. He holds the Series 7 and 63 registrations.

Robert Huebscher Headshot

Robert Huebscher
CEO and Founder
Advisor Perspectives

Robert Huebscher is the founder and CEO of Advisor Perspectives and serves as its editor-in-chief. He is a frequent speaker at industry conferences and has written extensively on topics including investment management, portfolio construction, financial planning and global economics.