Market Concentration and the Case for Deliberate Exposure

February 2026

US equity market concentration has risen to historically elevated levels in recent years.

A small group of large cap companies now represents a substantial share of US market capitalization and earnings, and the US slice of the global pie has grown. These facts have led many institutional investors to question whether portfolios remain adequately diversified and how they should adapt to this more concentrated market structure. For many investors, the question is not whether concentration can feel uncomfortable, but whether that discomfort warrants changes to long-term equity exposure.