AI Return Concentration

How to Read This View

The AI Return Concentration measures how distributed or concentrated index movement is within the AI Value Chain US-50. This metric answers a structural question: were returns driven broadly across many companies, or narrowly by a few?

What Return Concentration Represents

Return concentration describes how index movement is distributed across companies. It measures participation breadth rather than return magnitude—showing whether movement came from widespread participation or concentrated activity.

The metric answers: did many companies contribute to the index's movement, or did a small number of companies drive most of the change? This is about distribution patterns, not performance quality. Concentration applies regardless of whether total index return is positive or negative.

How to Read the Concentration Breakdown

The breakdown shows what portion of total return came from the top 5 companies versus the remaining 45 companies. When a small number of companies account for a large share of total return, concentration is high. When returns are spread more evenly across the broader group, concentration is low.

The top 5 versus other 45 split serves as a structural lens for understanding participation patterns, not a ranking system. It provides a consistent framework for measuring how concentrated or distributed index movement is over time.

What High vs Low Concentration Means

High concentration indicates that returns were dominated by a small number of contributors, reflecting narrow participation within the index. Most of the index movement came from a few companies while the majority contributed less.

Low concentration indicates broader participation, with more distributed contribution across companies. Index movement reflected activity across a wider range of companies rather than being driven by a few.

Neither high nor low concentration implies anything about market quality, sustainability, or future direction—they simply describe different participation patterns.

How This View Complements Other ClearTake Indicators

Return Concentration complements the AI Value Chain US-50 aggregate return by adding distributional context. While the aggregate shows overall index movement, concentration shows how that movement was distributed across companies.

This view works alongside layer-level analysis to provide a complete structural picture. Layer breakdown shows where movement originated; concentration shows how broadly or narrowly it was distributed within the index universe.

The metric adds information about breadth of participation without indicating direction or magnitude of returns.

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What This View Is — and Is Not

AI Return Concentration is:

• A distribution diagnostic showing participation breadth
• A structural lens for understanding return patterns
• A complement to aggregate and layer-level indicators

AI Return Concentration is not:

• A tool for identifying winners or losers
• A predictor of future returns or market direction
• An assessment of valuation quality or fundamentals
• A signal about market health or sustainability

This metric exists to make market structure observable through the lens of participation distribution, not to generate investment signals or market predictions.

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For detailed methodology, see the Methodology page.