Traders are diversifying their strategies with small caps and defensive sectors having their moment, Dan Draper, chief executive officer at S&P Dow Jones Indices, told CNBC's"Squawk Box Europe" on Wednesday.
Diversification into smaller stocks is a"free lunch" for long-term investors as market trends shift, according to the head of the world's largest index provider.mega-cap tech stocks — comparable to the dotcom bubble of the 1990s — traders are diversifying their strategies with small caps and defensive sectors having their moment, Dan Draper, chief executive officer at S&P Dow Jones Indices, told CNBC's"Squawk Box Europe" on Wednesday.with a concentration, he said.
Numerous market participants have flagged the potential opportunity in small- to mid-cap stocks as wider market forces shift.