Your S&P 500 Fund Is Dominated by AI

If you're invested in a fund that follows the S&P 500, about 40% of your money is effectively

tied to the performance of just 10 companies, most of which are deeply invested in AI development.

The S&P 500 is an index that is made up of publicly traded stocks of the 500 largest companies

in the United States, and each one is given a weighting based off the market size of that company.

The S&P 500 is up more than 40% since October 2021, thanks largely to AI momentum.

Nvidia especially has seen massive gains in the past couple of years. It rose more than

230% in 2023 and 170% in 2024. It's now more than 7% of the S&P 500. That means that

one company now carries as much sway in the S&P as the bottom 224 stocks combined.