Many investors' portfolios will have a strong allocation to the large banks and miners that dominate the ASX 200.
The market cap of several companies has a big impact on Australia's benchmark index.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 2% in 2026.
This is far below the historical average.
However some of the biggest ASX companies have outperformed this in 2026.
Let's see which blue-chips have outperformed the market this year.
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Materials leading the way
The S&P/ASX 200 Materials (ASX: XMJ) index has far outperformed the ASX 200.
It has risen by over 20% year to date.
This has been led by the two largest materials companies:
- BHP Group Ltd (ASX: BHP) shares have risen 42% year to date
- Rio Tinto Group Ltd (ASX: RIO) shares are up 24%.
This outperformance has been driven by a broad rally across iron ore, copper, and gold, supported by a weaker US dollar, falling bond yields, and improved sentiment following the Iran peace deal.
Bank shares disappoint
The big four bank shares have all underperformed this year.
The best performer has been Commonwealth Bank Of Australia (ASX: CBA) which is essentially flat year to date.
Meanwhile, the remaining three have all fallen between 3% and 12%.
Looking outside the big four, a blue-chip bank stock that has performed well has been Macquarie Group Ltd (ASX: MQG), which is up 24% for the year to date.
Another blue-chip stock that has performed well (outside of banking) has been Wesfarmers Ltd (ASX: WES).
Its defensive profile has held up well amidst broader market headwinds.
How to avoid over concentration
While these companies dominate the ASX 200, there is also a risk that investors become overconcentrated on just a few companies.
Many investors could end up overly exposed to banks or miners without realising, by owning individual stocks as well as ASX ETFs that are heavily weighted towards the same shares.
In case you are unaware, the big four banks and BHP account for over 32% of the entire ASX 200.
One way to avoid this is with an equal weighted ASX ETF such as the VanEck Vectors Australian Equal Weight ETF (ASX: MVW).
It provides a more balanced and diversified approach to the Aussie market.
It aims for true diversification by equally weighting across companies and reducing sector concentration.
MVW has less exposure to the mega-caps that dominate the S&P/ASX 200 Index compared to many Australian equity portfolios. MVW is underweight mega cap companies and overweight those large companies outside the mega-caps. Relative to the S&P/ASX 200, MVW has a higher weighting to stocks outside the top 15.
