Investors in the behemoth SPDR technology sector fund might be surprised to learn that until last week their exposure to Nvidia was roughly four times that of Apple, despite their comparable market values.
That disparity was costly for shareholders of the $70 billion State Street fund because Apple stock has outperformed Nvidia by 10 percentage points in the third quarter. And, it forced S&P Dow Jones Indices to tear up its rulebook to account for the growing might of the biggest tech companies.
The valuations of Apple, Microsoft and Nvidia, the three largest U.S. companies by market value, have soared above $3 trillion this year. Together, the companies make up more than 60% of the market value of the S&P 500’s information-technology sector—and that conflicts with fund-concentration rules that limit…
