Is the U.S. stock market too ‘concentrated’? Here’s what to know

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Just a handful of large U.S. companies account for a third of the S&P 500 stock index. Some experts fear investors are at risk.

The 10 largest U.S. companies accounted for 14% of the S&P 500 stock index a decade ago. Today, they account for more than a third.

The S&P 500's concentration "is a bit riskier than people realize," said Charlie Fitzgerald III, a certified financial planner based in Orlando, Florida. The stock market was as concentrated around the late 1950s and early '60s, for example, a period when "stocks did just fine," said Rekenthaler, whose research examines markets since 1958.When there were big market crashes, they generally don't appear to have been associated with stock concentration, he added.

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