A growing number of investors are shifting capital into exchange-traded funds that deliberately limit exposure to artificial intelligence and US equities, responding to the extreme concentration that has developed in major global indices.
This strategic reallocation reflects a broader market sentiment that the current dominance of a handful of technology giants poses significant downside risk to diversified portfolios.
The trend is gaining traction as institutional voices raise alarms about the sustainability of current valuations.
Canada's largest pension fund recently issued a cautionary note to investors, warning against the risks of chasing high-performing equities in the current market environment.
Such warnings from major asset owners underscore the growing unease among professional investors regarding the breadth of the rally, which has been heavily skewed toward a narrow set of sectors.
Handelsblatt highlights that passive investing is no longer a purely set-and-forget strategy; it now requires active scrutiny of fund compositions.