The U.S. equity market is more concentrated than it's been since the early 2000s technology bubble, as a small number of stocks have driven most of the gains for the S&P 500 index.
Is this a worrying sign for the markets going forward? Not necessarily. While the market has become historically "top-heavy" over the past seven years—stock valuations have not reached the excessive levels of the past.
Read how rising performance dispersion among the largest components in the S&P 500 may be an opportunity for active managers to add value through security selection.
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