Sector Performance and Concentration
Video
October 2, 2020
Roman Kouzmenko and Juan Sampieri Sector composition and concentration in global equity markets changed dramatically over the past 20 years. For example, the combined weight of information technology and communication services exceeded 40% of the MSCI USA Index as of the end of September 2020 — above those sectors' previous dot-com-bubble top. In September 2020, Amazon.com alone had a weight of 37% of consumer discretionary in the U.S. index, while Alibaba represented over 43% of the MSCI Emerging Markets Consumer Discretionary Index. How to interact with this plot: At the bottom, click on a sector pictogram and select a parent index. Hover over the middle graph to select a date and observe the weights of the largest five securities for the selected sector in the bar chart on the right.
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Have regional equity-market correlations risen?
Countries in MSCI ACWI subregions form regional building blocks for asset allocators, given strong average intraregional equity return correlations
Rise of Market Concentration
Market concentration, on the rise since the 2010s in most equity markets, markedly accelerated during the pandemic
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