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Even before Covid, the market was becoming focused a group of companies that were allegedly changing the way business was done in various industries. Constituents in the CCG Disruption Index include Tesla and Nio in the automotive space, NextEra and EnPhase in energy production, Zoom, Netflix, Snap, and Roku in communications/entertainment, Paypal and Square in financial services, Uber in transportation, Zillow in real estate, Teledoc in health care, and recent IPOs Airbnb and Door Dash, among others.
What we do not include in the Disruption Index are the giant graybeards of disruption, Apple, Amazon, Google, Facebook, and Microsoft. Our thinking is that much of the disruption caused by these companies has already occurred. However, if the companies were added to the index it would have little impact on the results because all of them behaved somewhat similarly to the index. Furthermore, the index is equal weighted so it would not be dominated by the giants if they were added.