The S&P 500 has a concentration problem. At the start of 2026, the top seven stocks account for roughly a third of the market-cap weighted index, leaving investors heavily exposed to a handful of mega-cap technology companies. Invesco S&P 100 Equal Weight ETF ( NYSEARCA:EQWL) offers a different approach: it takes the 100 largest companies in the S&P 500 and gives each equal weight, capping even giants like Apple Inc. ( NASDAQ:AAPL) and Microsoft Corporation ( NASDAQ:MSFT) at roughly 1% of the portfolio.
Nvidia's (NVDA) $4.27 trillion market cap leads the S&P 500, where the top 10 stocks account for 40% of its value. NVDA has been a primary driver of the benchmark index's gains and a drop in its stock could cause the index to tumble. Yet Nvidia's AI-driven rise reflects surging demand for its accelerators amid a concentrated market. Nvidia made early investors rich, but there is a new class of 'Next Nvidia Stocks' that could be even better.