If You Think Apple Has A Disproportionate Impact On The Stock Market, Then Check This Out

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Photo: By kurafire on Flickr

Most experts are quick to point out that the S&P 500’s surge has been largely due to Apple’s 56% year-to-date gain.It’s true.  The $590 billion company makes up for around 4% of the index, writes JP Morgan’s top equity strategist Tom Lee.

But this doesn’t mean the S&P 500 is worthless.

“Apple’s financial market dominance is a misperception,” writes Lee.

He adds that Apple’s share of the index is “well below the weightings of top stocks in other indices, such as Nestle in the SMI index or ENI SpA in the FTSEMIB index.”

In a recent research note to clients, Lee identified 11 major global stock market indices where a single company accounts for a larger share of the index than Apple does for the S&P 500.

Fast Retailing (Uniqlo) accounts for 7% of Japan's Nikkei 225

Market Cap: $21.65B

No. Of Index Components: 225

Description: Fast Retailing is an apparel retailing company, designing and selling apparel for men and women of all ages. The company is based in Yamaguchi, Japan and was founded in 1949.

Source: JP Morgan

Siemens accounts for 9% of Germany's DAX index

Market Cap: $84.34B

No. Of Index Components: 30

Description: Siemens AG is an electronics and electrical engineering company. They are headquartered in Munich, Germany and were founded in 1847.

Source: JP Morgan

PetroChina accounts for 10% of China's Shanghai index

Market Cap: $251.10B

No. Of Index Components: 872

Description: PetroChina produces and distributes oil and gas in China. PetroChina was founded in 1999 and is based in Dongcheng District, Beijing, China.

Source: JP Morgan

Vale accounts for 11% of Brazil's BOVESPA index

Market Cap: $116.78B

No. Of Index Components: 70

Description: Vale explores, sells, and produces basic metals throughout the world. Vale is based in Rio de Janeiro, Brazil and was founded in 1942.

Source: JP Morgan

Total SA accounts for 14% of France's CAC index

Market Cap: $112.42B

No. Of Index Components: 40

Description: Total SA is an integrated oil and gas company, with three separate segments: Upstream, Downstream, and Chemicals. The Company is based in Paris, France and was founded in 1924.

(Total SA also makes up 6% of the Euro Stoxx 50 index)

Source: JP Morgan

HSBC accounts for 15% of Hong Kong's Hang Seng index

Market Cap: $155.51B

No. Of Index Components: 48

Description: HSBC offers banking and financial products and services. The company was founded in 1865 and is based in London, the United Kingdom.

(HSBC also makes up 6% of the FTSE 100 index)

Source: JP Morgan

Samsung accounts for 16% of Korea's KOSPI index

Market Cap: $247.53B

No. Of Index Components: 778

Description: Samsung manufactures and sells semiconductors, televisions, telecommunication products, and digital media devices. The company was founded in 1938 and is based in Suwon-si, South Korea.

Source: JP Morgan

ENI SpA accounts for 21% of The United Kingdom's FTSE MIB index

Market Cap: $81.70B

No. Of Index Components: 40

Description: ENI SpA explores, produces, transports, and sells oil and natural gas. ENI SpA is based in San Donato Milanese, Italy and was founded in 1953.

Source: JP Morgan

Nestle accounts for 25% of Switzerland's SMI index

Market Cap: $184.64B

No. Of Index Components: 20

Description: Nestle packages, manufactures, and sells food products. The company is based in Vevey, Switzerland and was founded in 1866.

Source: JP Morgan

Here's a side-by-side comparison.

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