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The fund industry says index concentration is the big risk. But the evidence points elsewhere. Compressed expected returns are what really threaten your long-term wealth — and the right response is simpler and cheaper than the industry would have you believe.

The fund industry warns that S&P 500 concentration makes your index fund dangerous. A major new study covering nearly a century of data tells a very different story — and suggests the real risk is listening to people who profit from your fear.

S&P 500 concentration risk is at historic highs. If you own a global tracker, your portfolio may be far less diversified than you think. Here's what you can do about it.

If I had £1 for every time I read that index funds are too heavily concentrated in big US tech stocks I would be a very rich man. It is undeniably true. The FT recently reported that the top ten companies accounted for 37.3% of the S&P 500, which, by historical standards, is a very high proportion. Even more remarkably, just 26 stocks made up half the entire value of the index — the lowest number since at least 1980. Several market commentators have warned that rising levels