You'd be surprised, often funds are very heavily weighted in 1 or 2 or 3 stocks
The Hang Seng (a market cap weighted) "broad/market representative" index (HSI) has around 14% weighting to HSBC (bank), 25% weighting to two financials (i.e. HSBC + another), 16% weighting to two mobile telecoms stocks. So around 40%+ in just those four stocks (two sectors). The top 10 largest account for around 60% of the index.
With the other stocks more lightly weighted, its resistant to those stocks making much of a impact upon the whole index.
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