capital wednesday, page-65

Upmarket, it's for the same reason the dow remains the focus. There are many smaller indices that are more market specific, however to a large extent the dow, and the 200 are the economy. If their respective constituents fail, its effects are great.

That's one reason, the other is market dynamics. There are almost no funds in Australia that are weighted against the all ords, there are however hundreds that are weighted against the 200. This means every time caps change, or s&p make adjustments, compliance requirements force adjustments. Often a position is adjusted heavily without and consideration on whether the stock is good or bad, and everything to do with balance of the portfolio being managed.