The company’s weighting in the S&P 500 has swelled to 7.6%, the biggest of any one stock in the history of the benchmark index, according to S&P Dow Jones Indices.
If shares of Apple keep rallying, that could hurt the results of active fund managers, who strive to beat indexes such as the S&P 500 or Russell 1000.
The cost of limiting Apple shares may be particularly high for fund managers this year, given the stock's swelling weight in indexes.
“Fund managers at their own peril don’t hold Apple and a handful of stocks just like it at index weight or about index weight,” Morris said.
The stock is still his firm's fourth-largest holding, even though at 4% of the portfolio, it puts it underweight Apple versus the S&P 500.
Persons:
Dow, Russell, Todd Sohn, Robby Greengold, Walter Todd, Todd, Alex Morris, ” Morris, Refinitiv Datastream, Peter Tuz, ” Tuz, Lewis Krauskopf, Ira Iosebashvili, Anna Driver
Organizations:
YORK, Dow Jones, Apple, Microsoft, Nvidia, Morningstar, Greenwood Capital, Research, “, Chase Investment, Thomson
Locations:
Apple’s, South Carolina, United Kingdom, Russell