Six tech stocks now make up half the value of the Nasdaq 100

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The surging value of mega-cap tech stocks is giving U.S. index funds, most notably the Nasdaq 100, a hefty concentration in just a few names.

The six now make up almost 41% of the Nasdaq, which has more than 2,700 member companies.that it has "strength in diversity" and says that diversity "has been critical to the index's strong performance and success over the past two decades." It has beaten the S&P 500 10 of the past 11 years and, over the past decade, the Nasdaq 100 is up 496%, versus 205% for the S&P 500 and 388% for the Nasdaq Composite.

While there may be diversity among the components of the index, the concentration at the top is greater than at any of its major index peers. That leaves investors in the Nasdaq 100 particularly susceptible to earnings that will be coming out over the next week.Microsoft and Tesla are set to report quarterly results Wednesday afternoon. Apple, Amazon, Alphabet and Facebook all follow next week.

Outside of the the top six stocks, the companies that have had the biggest impact on the Nasdaq 100 this year are

 

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Better hope MSFT and TSLA earnings go well after the closing bell then.

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