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Market Snapshot: 2019 Record Concentration in Russell 1000 Growth Index

December 27, 2019

Record Concentration Level for Russell 1000 Growth Index

  • The five largest companies in the Russell 1000 Growth Index represent a record 29.3% of the weighting of the index, as of November 2019.
  • This new record surpasses the 29.1% weighting amidst the dot.com bust in May 2001.
  • There were 84 observations since 1984 when the month-end concentration of the top five companies had greater than 20% weight of the index. In these instances, over the next three years, the top five underperformed the broader Russell 1000 Index by about 3.8%, 80% of the time.

 

The views expressed represent the opinions of the GIM portfolio managers as of December 24, 2019 and are not intended as a recommendation of any security, sector or product. Past performance is not indicative of future performance. Actual performance may vary from any opinion reported herein. For institutional adviser use only, not intended to be shared with retail clients.