Does anyone else think about how weird the S&P 500 actually is?
u/realcryptocow ·
Reddit — r/stocks
· September 08, 2026 at 19:40
· ⬆ 21 pts
· 💬 58 comments
| View on Reddit ↗
AI Summary
{"summary": "Author questions the market-cap-weighted structure of the S&P 500 and the growing dominance of its top constituents.", "reason": "no_investment_thesis", "ideas": [], "model": "deepseek-v4-flash"}
Score21
Comments58
Upvote %64%
▶ Full Post Text
Full disclosure: I own the S&P like everyone else, so I don't mean for this to come off as some “capitalism bad” post. I just wonder if anyone else has thought about how odd (and low key predatory) the structure of the S&P500 is?
The index is market cap weighted obviously, so the companies that become the biggest and most dominant naturally become a larger piece of everyone’s portfolio. The top 10 companies are now almost 40% of the entire index, and roughly $13 trillion is passively indexed to the S&P 500. For a huge number of Americans, owning these companies through retirement accounts is basically the default path to building wealth.
Sounds great, but
Those same companies are increasingly powerful *because* they’ve gotten so good at extracting value from the public. I probably don't need to cite any examples, but here are a few
* [Google illegally maintained a monopoly in search](https://www.justice.gov/opa/pr/department-justice-wins-significant-remedies-against-google)
* [Visa just fully runs a monopoly, as well](https://www.justice.gov/archives/opa/pr/justice-department-sues-visa-monopolizing-debit-markets)
* [FTC and 22 states accused Amazon of secretly manipulating its advertising auctions to charge sellers more ($10B+ extracted)](https://www.ftc.gov/news-events/news/press-releases/2026/08/ftc-states-sue-amazon-over-secret-ad-surcharge-scheme)
I could go on and on, but there's no point. No matter what, nothing seems to happen to these companies. In fact, they get even stronger off of the very back of the people they are serving shitty products to.
I understand that the S&P isn’t supposed to be some "moral institution", but it's weird how little discussion I see about a system designed to trap (and almost financially cuck) the consumer. At some point consumers, workers and shareholders are all the same people.
Maybe i'm overthinking it. What do you all think?