Two bar charts showing the year-to-date average return, weighting in the S&P 500 Index, and percent return contribution of the largest seven stocks in the S&P 500 Index and the remainder of the S&P 500 Index. As of December 31, 2023, the largest seven stocks in the S&P 500 Index returned 111.6% year to date on average. They were 28% of the index and contributed to 62% of the index’s return. As of December 31, 2023, the remainder of the S&P 500 Index returned 13.2% year to date on average. They were 72% of the index and contributed to 38% of the index’s return.
Sources: FactSet and Wells Fargo Investment Institute, as of December 31, 2023. YTD = year to date. The S&P 500 Index is a market-capitalization-weighted index considered representative of the U.S. stock market. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results. Investing in stocks involves risk and their returns and risk levels can vary depending on prevailing market and economic conditions. The largest seven stocks in the S&P 500 Index are based on market capitalization.
Key Takeaways
- Market breadth has been extremely narrow this year, with the largest seven stocks in the S&P 500 Index, often dubbed the “Magnificent Seven”, being the major contributors to the index’s positive performance in 2023.