According to Edward Dowd, foreign investors who purchased $SPX ETFs at the height of the MAG 7 mania faced a significant concentration risk, with 34% of their investment being exposed to just seven stocks. This highlights a lack of diversification in their portfolios, which poses potential risks in terms of volatility and market correction impacts. Proper diversification is crucial for managing risk in ETF investments.

According to IntoTheBlock, concentration risk is crucial for traders to monitor, especially when deploying large-scale or complex strategies. The source provides tools to track this risk across leading DeFi protocols to inform trading decisions.

According to IntoTheBlock, concentration risk is a crucial factor to monitor, particularly when deploying at scale or managing complex strategies. It is essential for traders to track this risk across leading DeFi protocols to mitigate potential vulnerabilities. IntoTheBlock provides tools to monitor these risks effectively, helping traders make informed decisions.