There’s also an element of safety. Investors grew used to the biggest companies growing even larger, dominating market-cap weighted indexes. At the start of the year, the top five publicly-traded American companies made up a record 18% share of the S&P 500. Through the 11-year bull market that just recently ended, the S&P 500’s five biggest companies accounted for more than a fifth of the index’s 400% gain.
“It’s partially what people are comfortable getting into in a market downturn,” said Sam Huszczo, the founder of SGH Wealth Management. “The large cap space is still the juggernaut, large cap stocks have more stability.”