Think You’re Diversified with the S&P 500? Think Again.

TL;DR: TODAY’S EDITION

• The S&P 500 isn’t diversified anymore — the top 10 stocks make up ~40% of the index.

• Those same 10 only generate 32% of earnings, while trading at far higher valuations (P/E 29.8 vs. 20.6 for the rest).

• Buying the index today means betting heavily on Nvidia, Microsoft, Apple, Amazon, Meta, Broadcom, Alphabet, Tesla, and Berkshire Hathaway.

• The Smart Money Portfolio, built from the best investors’ filings, holds 34 stocks and is already outperforming the S&P 500 by +4.8% YTD.

S&P 500

The Index Illusion

For decades, the S&P 500 has been sold as the safest way to “own the market.” A simple, diversified basket of America’s biggest companies. Buy it, hold it, and forget it.

But here’s the uncomfortable truth: in 2025, that diversification is mostly an illusion.

The Top-Heavy Problem

• The top 10 stocks in the S&P 500 now make up almost 40% of its market cap.

• The other 490 stocks? They share the remaining 60%.

• Yet those 10 giants only generate about 32% of the index’s earnings.

And it gets worse:

• Top 10 average P/E ratio: 29.8

• The other 490: 20.6

Translation: You’re paying a premium price for the biggest names, while under-owning the rest of the market.

Meet Your Real Portfolio

When you “buy the market” today, you’re actually loading up on just a handful of giants:

Nvidia, Microsoft, Apple, Amazon, Meta, Broadcom, Alphabet, Tesla, and Berkshire Hathaway.

Great companies, sure. But if they stumble, your “diversified” portfolio isn’t nearly as safe as you think.

A Smarter Way

Index investing used to be a good shortcut. Today, it means paying up for overvalued mega-caps and underweighting hundreds of solid businesses.,

That’s why we built the Smart Money Portfolio. Instead of blindly following market hype, it’s built from the real portfolios of the world’s best investors. Right now it holds 34 stocks, diversified across sectors — and since January it’s up +15.7% vs. +10.9% for the S&P 500.

Two of our positions posted double-digit gains in the last week alone: Broadcom (+15.9%) and Micron (+11.0%) — both riding trends beyond the Mag7 hype.

Join Smart Money Premium (Now at 50% Off)

We want as many people as possible to level up their investing. That’s why we’re doing something we’ve never done before:

For the next 7 days only, Smart Money Premium is 50% off:

• $17.45/month instead of $34.90

• $149/year instead of $299 — that’s just $0.40 a day to transform your financial life.

With Premium you’ll get full full access to the Smart Money Portfolio (34 stocks, exact weights, ready to copy): Clear insights into where the smartest investors are betting right now.

If you’ve ever wanted to invest like the pros — this is the easiest way to start.

👉 Sign up today and start copying the pros.

🔑 Takeaway

The S&P 500 isn’t “the market” anymore — it’s a lopsided bet on a few tech giants.

If you want real diversification (and a shot at real outperformance), you need to look where the smartest investors are actually putting their money.

That’s exactly what we do with Smart Money.

🫶 BE THE FRIEND WITH THE GOOD TIPS

Know someone always wondering, “Which stock should I buy next?” Share this article with them! It’s a simple way to start investing like the pros — no need to figure it all out yourself when Smart Money’s already done the work. They’ll thank you later.

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