With the top 20 stocks accounting for ~60% of the ASX 200, most Australian portfolios are more concentrated than investors realise, and passive inflows are deepening that concentration each day. The stocks overlooked as a result tend to offer better valuations, less crowding and more room to grow. As Dion explains, the mid-cap and small-cap segment has historically been “the sweet spot for returns”, and the gap between index leaders and the rest of the market is widening.