• TRM (USD/COP)COP 3,235.59 +1.65% +COP 52.60Colombia's official exchange rate (Financial Superintendence), valid Nov 4 to Nov 4
  • EuroCOP 3,617.08 +1.72% +COP 61.02Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote
  • Mexican pesoCOP 173.98 +3.35% +COP 5.64Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote

How to reduce AI dependence in a portfolio concentrated in tech

FinanceInternationalEl Economista45 s readAI summary
Image: El Economista

The concentration of the S&P 500 in the Magnificent Seven and in chipmakers such as AMD, Broadcom, TSMC, ASML and Micron, which together account for close to a third of the MSCI World, poses a growing risk for investors. The article reviews tools to decouple from technology: equal-weighted indices, geographic diversification —the United States accounts for about 70% of the MSCI World—, sectors such as energy, utilities, healthcare and consumer staples, and fixed income. Joaquín Gómez (elEconomista.es) and Fernando Luque (Morningstar) cite value funds with low or no tech exposure.

In 45 seconds

  • Big tech and chipmakers account for close to a third of the MSCI World, according to the estimates analyzed
  • Equal-weighted indices and geographic and sector diversification reduce reliance on a few stocks
  • The United States accounts for about 70% of the MSCI World and European equities traded at a PER roughly six points below the US
Read the full story at El Economista

IASummary generated by artificial intelligence from a story by El Economista. It may contain errors: the original source prevails.

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