Considering the fact that a capitalization-weighted index
or equal-weighted index is a type of market index with individual components that are weighted according to their total market capitalization, it becomes clear that the large price moves in commodity-driven companies, the largest components of the TSE, had a significant effect on the value of the index"
The TOPIX is a free-float adjusted market capitalization-weighted index
that is calculated based on all common stocks listed on the First Section of Tokyo Stock Exchange, the cash market of JPX, and is widely used as a benchmark by institutional investors in Japan.
The capped, float-adjusted, capitalization-weighted index
, whose constituents are engaged in midstream activities involving energy commodities, is disseminated real-time on a price-return basis and on a total-return basis (AMEIX).
The float-adjusted, capitalization-weighted index
, which includes 50 prominent companies and captures approximately 75% of available market capitalization, is disseminated real-time on a price-return basis (NYSE: AMZ) and on a total-return basis (NYSE: AMZX).
The Borsa ystanbul National 100 (BIST 100) Index -- a capitalization-weighted index
composed of national market companies except investment trusts -- was, however, a loss for its investors.
The Index is a modified market capitalization-weighted index
, with no country having a weight of more than 30% at each semi-annual rebalancing.
One drawback, however, is that because it tracks a market capitalization-weighted index
, the fund's three largest holdings are pharmaceutical manufacturers Pfizer [PFE ***], Johnson and Johnson [JNJ ***], and Merck [MRK ***].
The new financial instrument, called Lyxor ETF Japan (Topix), is aimed at giving both institutional and private investors access to the market capitalization-weighted index
made up of all the 1,718 firms traded on the TSE First Section, the three said in a joint statement.
The exchange said a contract it has signed with Morgan Stanley ''aims to meet the strong demand for a hedging and investing instrument that is based on a globally recognized, capitalization-weighted index
, which reflects the sectoral diversity of the Japanese equity markets.
The new offerings are designed for institutional investors seeking to further diversify their non-US asset allocations, and provide the potential for capital appreciation with less absolute risk than the capitalization-weighted index
The company added that the S&P/TSX 60 is a capitalization-weighted index
offering exposure to 60 large-cap Canadian companies in various industries and is structured to reflect the sector weights of the S&P/TSX Composite.