07/03/2023

Apple's Growing Stock Market Heft

This poses a dilemma for fund managers

The massive rally in Apple's shares is forcing some fund managers to revisit a thorny dilemma: They may not own enough of the stock.

Apple’s share price has soared 49 percent so far this year, ballooning its weight in stock indexes to record levels and pushing its market capitalization over $3 trillion. The company’s weighting in the S&P 500 has swelled to 7.6 percent, the biggest of any one stock in the history of the benchmark index, according to S&P Dow Jones Indices.

That hefty weighting means moves in Apple’s shares have an outsized influence on index performance. Yet many investors hold allocations of Apple that are smaller than its relative weighting in indexes, whether it's due to the desire for portfolio flexibility, worries over owning too much of any one position and limitations imposed by the rules of their own funds.

Please select this link to read the complete article from Reuters.