A capitalization-weighted index, also known as a market value-weighted index, is a type of stock market index in which individual components of the index are included in amounts that correspond to their total market capitalization (shortened as "market cap").
What is a cap weighted index fund?
The Capitalization-Weighted Index (cap-weighted index, CWI) is a type of stock market index in which each component of the index is weighted relative to its total market capitalization. In a capitalization-weighted index, companies with larger market capitalization exert a greater impact on the index value.
What is a weighted average market cap?
Weighted average market capitalization is a type of market index in which each component is weighted according to the size of its total market capitalization. Market capitalization is the sum of the total value of a company's outstanding shares multiplied by the price of one share.
What is the weighted average market cap of the S&P 500?
The Russell 2000 index is a stock market index comprised of approximately 2,000 small-capitalization companies. Both the S&P 500 and the Russell 2000 index are market cap- weighted.