A new Barron’s article highlights how “broad” market indexes like the S&P 1500® often mirror the same concentration challenges found in the S&P 500®, with the top ten mega-cap stocks representing nearly 40% of total market weight.
In the story, Intech CEO Jose Marques discusses the growing importance of small- and mid-cap companies in restoring balance to U.S. equity portfolios:
“Given the level of concentration that we have in the S&P 500, that seems prudent. The AI trade is a freight train,” Marques told Barron’s.
The article references Intech’s S&P Large Cap Diversified Alpha ETF (LGDX) and Intech’s S&P Small-Mid Cap Diversified Alpha ETF (SMDX)—two strategies designed to complement one another by combining large-cap exposure with deliberate breadth across smaller and midsize companies.
The discussion underscores a challenge many investors face today: broader index exposure doesn’t necessarily mean better diversification.
At Intech, we engineer diversification by design—aligning with familiar S&P® benchmarks while systematically refreshing portfolio weights to maintain balance and capture the potential of market breadth.
Read the full article: Barron’s: “Breaking Up With Big Tech Is Hard to Do. How to Truly Diversify.” (access required)
Please see here for a full list of LGDX’s holdings and here for full list of SMDX’s holdings.
