While the Magnificent Seven drove equity index returns in recent years, earnings growth has been broadening beyond mega-cap tech as AI adoption expands across industries.
In our view, AI adoption is increasingly influencing the next phase of earnings growth across industries such as infrastructure, healthcare, and even gaming.
But varying AI adoption rates may create winners and losers.
An actively managed ETF like the iShares Large Cap Core Active ETF seeks to identify companies benefiting from AI adoption among the 'best of the rest' beyond the Mag 7.
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By Jay Jacobs
Beyond the Magnificent 7: AI fuels broader earnings growth
The U.S. equity market has reached historic levels of concentration. The top 10 companies now represent 37.92% of the S&P 5002
