The FANG Isn’t Distorting Wall Street as Much as You Think

Big technology casts a vast, lopsided shadow across the modern market.

Counting gigantic Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) in with the famous “FANG” group of dot-com darlings, just six companies have swelled up to the point where they command a full 15 percent of all the money flowing through the entire S&P 500.

For perspective, the entire health care sector — all the drug makers, hospital chains and insurance groups — barely fits into 15 percent of the index. It takes all the big U.S. oil stocks plus real estate, telecommunications and the utilities to match that staggering six-stock allocation. That’s not just a concentrated position. Their very weight distorts investors’ sense of what’s going on elsewhere in the market and the economy as a whole.

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