Scientific Beta

Investment News New Zealand: "Scientific Beta has made the case to switch or stick to diversified stock exposures despite the ongoing dominance of US mega-cap companies."

Investment News New Zealand 01/06/2025

"(...) In a new paper, Scientific Beta authors Daniel Aguet and Felix Goltz, argue that market concentration moves in cycles with periods of mega-cap underperformance inexorably following sustained runs at the top.

The study back-tested the performance of five variously constructed diversified portfolios and four “different risk-based approaches” during periods of low and high US stock market concentration dating back to the 1970s. (...)"