Uploaded July 2026 | Updated September 2026, 1 day ago
The S&P 500 is supposed to give you diversification across 500 companies, but is that still true? Right now, just 10 stocks control roughly 40% of the entire index, and nearly all of them are making the same bet on AI. That's a record high concentration level we've never seen before.
In this video, Dustin Tibbitts of Jazz Wealth breaks down exactly how this happened, why passive investing and index funds are actually accelerating it, and what it means for your portfolio… especially if you're close to retirement.
📊 We cover:
● How top-10 concentration has grown from 20% (1990) → 27% (dot-com peak) → 40%
(today)
● Why every dollar you put into an index fund sends 40 cents to just 10 AI-correlated
stocks
● The passive investing cycle that keeps feeding the same names
● What near-retirees should actually consider doing about it
● Equal-weighted S&P alternatives and diversification strategies worth exploring
Whether you're 30 years from retirement or 3, understanding this concentration risk is critical to protecting what you've built.
Schedule a call with us today at jazzwealth.com/chatwithjazz
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. All investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Please consult with a qualified financial, legal, or tax professional before making any financial decisions. Steward Partners, its affiliates, and its Wealth Advisors do not provide tax advice.
The S&P 500 Index is a market-capitalization-weighted index that tracks the performance of 500 large-cap U.S. companies; it is unmanaged and cannot be invested in directly. References to index concentration, historical comparisons, or market behavior are based on publicly available third-party data (including Bloomberg, Schwab, and RBC Wealth Management) believed to be reliable but not independently verified and subject to change. Examples provided, including
hypothetical allocations and performance contributions, are for illustrative purposes only and are intended to demonstrate general market concepts, including concentration and diversification
dynamics. References to “AI-connected” companies reflect firms meaningfully exposed to artificial intelligence-related revenues, infrastructure, or market themes; such references are not
endorsements of any specific company or sector. Discussion of passive investing and market structure represents a simplified explanation and does not capture all factors influencing asset prices or fund flows. Mention of specific securities, indices, or investment products (including equal-weight indices or ETFs) is for comparison purposes only and should not be considered a recommendation.
Investment advisory services are offered through Steward Partners Investment Advisory, LLC (“SPIA”), an SEC-registered investment adviser. SPIA and Steward Partners Global Advisory, LLC are affiliates and collectively referred to as Steward Partners
The S&P 500 is supposed to give you diversification across 500 companies, but is that still true? Right now, just 10 stocks control roughly 40% of the entire index, and nearly all of them are making the same bet on AI. That's a record high concentration level we've never seen before.
In this video, Dustin Tibbitts of Jazz Wealth breaks down exactly how this happened, why passive investing and index funds are actually accelerating it, and what it means for your portfolio… especially if you're close to retirement.
📊 We cover:
● How top-10 concentration has grown from 20% (1990) → 27% (dot-com peak) → 40%
(today)
● Why every dollar you put into an index fund sends 40 cents to just 10 AI-correlated
stocks
● The passive investing cycle that keeps feeding the same names
● What near-retirees should actually consider doing about it
● Equal-weighted S&P alternatives and diversification strategies worth exploring
Whether you're 30 years from retirement or 3, understanding this concentration risk is critical to protecting what you've built.
Schedule a call with us today at jazzwealth.com/chatwithjazz
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. All investing involves risk, including the potential loss of principal. Past performance is not indicative of future results. Please consult with a qualified financial, legal, or tax professional before making any financial decisions. Steward Partners, its affiliates, and its Wealth Advisors do not provide tax advice.
The S&P 500 Index is a market-capitalization-weighted index that tracks the performance of 500 large-cap U.S. companies; it is unmanaged and cannot be invested in directly. References to index concentration, historical comparisons, or market behavior are based on publicly available third-party data (including Bloomberg, Schwab, and RBC Wealth Management) believed to be reliable but not independently verified and subject to change. Examples provided, including
hypothetical allocations and performance contributions, are for illustrative purposes only and are intended to demonstrate general market concepts, including concentration and diversification
dynamics. References to “AI-connected” companies reflect firms meaningfully exposed to artificial intelligence-related revenues, infrastructure, or market themes; such references are not
endorsements of any specific company or sector. Discussion of passive investing and market structure represents a simplified explanation and does not capture all factors influencing asset prices or fund flows. Mention of specific securities, indices, or investment products (including equal-weight indices or ETFs) is for comparison purposes only and should not be considered a recommendation.
Investment advisory services are offered through Steward Partners Investment Advisory, LLC (“SPIA”), an SEC-registered investment adviser. SPIA and Steward Partners Global Advisory, LLC are affiliates and collectively referred to as Steward Partners
