If appetite for high yield bonds continues to moderate, this is indicative of a dampening in risk appetite, a scenario that does not
favor small cap names.
The fund is also capitalization weighted, meaning that it will favor large cap stocks and give less attention to
small cap names.
You might be surprised to find that there are
some small cap names that have also raised their dividend for at least the past 50 + years.
If you are talking about the real broad market such as the TSX, I agree that dropping
the small cap names might affect performance as small caps have historically provided better returns than large caps.