MMM just had a post about socially responsible investing and it it he shows that the majority of the two index funds he talks about, VTI and ESGV are both heavily weighted to tech stocks - especailly the big ones like apple, microsoft, facebook, netflix, amazon, google etc. This sparked a question i have had for a while now, with the current focus on index investing and folks blindly putting money into them, will this trend artificially inflate asset prices for these and other similar companies? In effect are the biggest getting bigger (more investment) solely because they are big and a greater percentage of the index? This process feels like it is creating a bubble of sorts without considering underlying business fundamentals? On some level buying index funds feels like, in a weird analogy, buying the same groceries without price shopping or thinking about what you need.
If yes, should we be worried or is there nothing to fear?
or am i barking up the wrong tree?