A new Barron’s column examines how the S&P 500’s market-cap weighting can translate into significant mega-cap exposure—particularly when leadership narrows and the largest technology names dominate index weight.
In the piece, Barron’s notes that the “Magnificent Seven,” plus Broadcom, now represent about 40% of the S&P 500 as of 11/30/2025 and explores why some investors are revisiting alternative weighting approaches, including revenue weighting, to diversify exposure while remaining in large-cap equities.
Barron’s also quotes Intech CIO Ryan Stever on the portfolio-construction implications of concentration: “You can’t just pour into the winners. You have to avoid concentration.”
The article highlights revenue-weighted implementation as one example—using revenues (business scale) rather than market value (price) to determine weights—potentially reducing reliance on a small set of mega-cap winners while maintaining broad large-cap exposure.
At Intech, we approach the concentration challenge from a portfolio-engineering mindset: staying aligned with familiar S&P® benchmarks while systematically refreshing portfolio weights to support diversified sources of return and risk exposures over time.
Read the full article: Barron’s — “Look Past the S&P 500’s Market Cap and Focus on Revenue Instead” (access required).
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