The new K-shaped economy splits the rich from the ultra-rich: The top 0.1% averages more than $200 million—and is pulling away from the rest of the 1%

The rich in America are becoming wealthier, but the wealth disparity among them is growing rapidly. A Fortune analysis of Federal Reserve data reveals that the top 0.1% of earners now have an average net worth of $204 million, which is seven and a half times greater than the next wealthiest slice of the top 1%. This ratio is the highest since the Federal Reserve began tracking it in 1989, having increased from 6.2 times at the end of 2019.

In the last seven years, the wealth of the top 0.1% has more than doubled, from $13.4 trillion to nearly $28 trillion in the second quarter of 2026. Meanwhile, the rest of the top 1% saw their wealth grow by 68%, from $19.3 trillion to $32.5 trillion over the same period. Currently, the top 0.1% controls 15% of the nation's household wealth, up from 14.5% in the first quarter of 2026.

The ultra-rich's wealth primarily comes from stocks and mutual funds, which have been performing exceptionally well in recent years, thanks largely to advancements in artificial intelligence and technology. These investments have propelled the top 0.1% ahead of the rest of the 1% in terms of wealth accumulation. Surprisingly, the top 0.1% holds nearly as much in stocks and mutual funds as the entire rest of the top 1%, totaling $16.2 trillion compared to $16.7 trillion.

The rest of the top 1% relies more heavily on real estate and retirement accounts for their wealth. They possess $4.7 trillion in real estate and about $1.7 trillion in retirement plans, while the top 0.1% holds only $230 billion in retirement plans. The composition of assets between these two groups has resulted in a widening wealth gap, as high-performing tech companies and rising stock prices have disproportionately benefited those with larger stock holdings.

Economists suggest that this wealth disparity is primarily a result of the recent economic shocks rather than a deep structural shift in the economy. However, experts warn against assuming that the K-shaped divide among the 1% is permanent, as it may be an artifact of the unique economic challenges faced today.