Market value-weighted index

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Market value-weighted index

An index of a group of securities computed by calculating a weighted average of the returns on each security in the index, where the weights are proportional to outstanding market value.

Capitalization-Weighted Index

An index in which the price is determined by the price of individual stocks, weighted for total market value. For example, if the price of a component stock of the index changes, its effect on the index as a whole is proportionate to share's price multiplied by the number of shares the company has outstanding. This means that changes in price will affect the index more if the component company has greater value. Most non-American market value-weighted indices give further weighting (called float-weighted indexing) to properly account for partial government ownership of many large corporations. This method of index weighting contrasts with a price-weighted index, in which all price changes are weighted differently, and a market share-weighted index, which weights only by the number of shares outstanding and not by their value. Major examples of a market value-weighted index include the NASDAQ Composite Index and the Standard & Poor's 500. The latter uses float-weighted indexing to match its calculations more closely with foreign counterparts.
References in periodicals archive ?
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).
JSI is a market capitalization-weighted common stock index consisting of 60 Canadian companies that pass a set of broadly based ESG rating criteria.
The Russell 2000[R] Index is a market capitalization-weighted index designed to measure the performance of the small-cap segment of the U.
The Index is a modified market capitalization-weighted index, with no country having a weight of more than 30% at each semi-annual rebalancing.
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.
A capitalization-weighted basket of stocks on the New York and American stock exchanges held from 1926 to 2002 returned an average of 9.
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.
While it's true that capitalization-weighted indices inherently "up-weight" recent winners, index funds also benefited from the upswing.
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 two are the TOPIX 1000 and the Tokyo Stock Exchange Mothers Index, both of which are market capitalization-weighted indexes, the TSE said.