Capitalization-Weighted Index
A capitalization-weighted index assigns larger weights to companies with larger full or float-adjusted market values. See formulas, examples, and risks.
Index weighting, float-adjusted capitalization, price weighting, and benchmark market-cap statistics.
Index Weighting and Float Methodology explains how benchmark providers convert eligible securities into constituent weights. Free-float capitalization and free-float methodology are covered together in the float-adjusted market-capitalization guide.
Use this branch when benchmark selection, index membership, weighting, float adjustment, publication source, region, sector, or dividend treatment changes the comparison being made.
| Term | Use it for |
|---|---|
| Capitalization-weighted Index | How company market values determine constituent weights. |
| Float-Adjusted Market Capitalization | Free-float value, investable weight factors, ownership exclusions, and index-weight calculations. |
| Price-Weighted Index | An alternative method in which nominal share prices determine index influence. |
| Weighted Average Market Capitalization | A portfolio or fund statistic summarizing the market-cap profile of holdings. |
Check the index provider, universe, eligibility rule, weighting method, float adjustment, rebalancing schedule, currency, dividend treatment, data date, and whether the index is investable or only a benchmark.
Indexes are benchmarks and data tools, not personalized investment recommendations or performance promises.
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A capitalization-weighted index assigns larger weights to companies with larger full or float-adjusted market values. See formulas, examples, and risks.
Float-adjusted market capitalization values shares available to public investors. Learn the formula, free-float methodology, index weights, and limits.
A price-weighted index gives each constituent influence in proportion to its quoted share price, not its company size or public float.
Weighted average market capitalization summarizes the company-size exposure of a portfolio. Compare arithmetic, geometric, and median methods.