Norway's Sovereign Fund Concentrates One-Third of US Portfolio in Mega-Cap Tech

Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, holds a vast U.S. equity portfolio comprising 1,577 stocks. However, nearly one-third of its $935 billion U.S. equity portfolio is concentrated in just seven companies, known as the "Magnificent 7." This significant concentration is led by tech giants such as Nvidia, Apple, and Microsoft. This allocation highlights a growing market distortion where institutional capital heavily favors a select few mega-cap tech firms. Consequently, overall market performance is increasingly dependent on these powerful stocks. The trend underscores potential risks for broader market diversification while affirming the continued dominance of these technology behemoths.