S&P 500 Market Returns And Why Your Performance Is Worse

As I wrote this blog, the S&P 500 index is up roughly 17% year-to-date. Most likely, your portfolio isn’t. This is a common frustration among many investors in the market this year in particular. As discussed previously, the S&P 500 index performance is a bit deceiving. The majority of the gain in the market this year has come from essentially seven stocks with the largest concentration in the index in terms of market capitalization.

The surge in those stocks has skewed the performance of the broad market index. The performance of the bottom 493 stocks remains markedly different.


As shown, the market capitalization of the top seven stocks is so large that it skews the performance of the index overall. We can see this visually by comparing the performance of the market and equal-weighted S&P 500 indices.

s&p 500