Major companies Broadcom and Oracle boost the collective weight of the "Ten Titans" to a notable 39% within the S&P 500. Here's a breakdown of what this shift could imply for your investment portfolio.
The S&P 500, a benchmark for the U.S. stock market, has experienced a significant surge since the start of 2023, with a remarkable 70% increase. This growth can be largely attributed to the dominance of the Ten Titans, a group of the largest and most influential companies in the index.
The Ten Titans, which include tech giants like Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, Tesla, Broadcom, Oracle, and Netflix, collectively make up 39.1% of the S&P 500. Their dominance is so pronounced that the S&P 500 can be considered a growth index, similar to the Nasdaq Composite.
The Vanguard S&P 500 ETF, SPDR S&P 500 ETF, and iShares Core S&P 500 ETF, popular investment vehicles, have significant positions in the Ten Titans. This means that investors who choose these ETFs are heavily exposed to these companies, making the S&P 500 a high-stakes bet on a select few mega-cap names.
As of Sept. 16, 2025, all ten of the largest companies in the S&P 500 are tech companies, further emphasizing the index's reliance on these titans. However, this concentration raises concerns about the S&P 500's potential volatility in the future.
Broadcom and Oracle, while not part of the original "Magnificent Seven" index, have joined the Ten Titans. Broadcom has seen a 19% increase since reporting earnings on Sept. 4, 2025, and is getting closer to reaching a $2 trillion market cap. Oracle, on the other hand, soared 36% on Sept. 10, 2025, in response to its own blowout earnings and guidance, but has since seen a decrease from its peak. Despite this, Oracle remains one of the ten largest companies in the S&P 500.
The rise of the Ten Titans has made the S&P 500 a lucrative but risky investment for those seeking exposure to top growth stocks. However, investors seeking mid-cap or large-cap stocks outside the S&P 500 index may find opportunities by diversifying their portfolios with value and dividend stocks that are not heavily represented in the index.
In conclusion, the S&P 500, driven by the Ten Titans, has delivered impressive returns in recent years. However, its reliance on a select few companies could make it more volatile in the future. Investors should consider diversifying their portfolios to mitigate this risk and find opportunities in the broader market.
Read also:
- User Data Analysis on Epic Games Store
- Rachel Reeves conducts a discussion with Scott Bessent and financial executives, focusing on investment matters
- Hyundai accelerates production plans: Introducing 7 new N models, aiming for a sales figure of 100,000 units by 2030.
- Yasa, an electric car engine producer, plans to broaden its operations.
