" ...stocks that experience 30% falls versus 10% falls means...

" ...stocks that experience 30% falls versus 10% falls means more offloading of the 30% faller than the 10% faller."

Which is another way of saying that, by construction, cap weighted funds oblige themselves to buy stocks that have gone up in price and sell stocks that have gone down !!!
Hence it is better that they do not rebalance too frequently, otherwise they would continuously ratchet themselves backwards just as a result of noise in the market.

This is one handicap that the individual investor is not obliged to subscribe to.
Mind you, he or she has plenty of other handicaps to choose from.

Cheers