We’ve seen lots of recent commentary expressing concern about the dominance of the S&P 500 by just a handful of tech companies. Many investors are familiar with the FANG stocks (Facebook, Amazon, Netflix and Google). We consider the market cap weighting of the S&P 500 index to be a drawback, and one of the reasons we prefer the investment approach of Dimensional Fund Advisors (DFA). As of the end of June, the four largest companies in the S&P 500 (Apple, Microsoft, Amazon and Facebook) represented 12.5% of the index. Conversely, the same four companies represented 8.7% of the DFA US Core Equity I fund, which we use as the main large cap fund for our clients.