answersLogoWhite

0


Best Answer

Value weighted index is a market average such as Standard & Poor's 500 Index that takes into account the market value of each security rather than calculating a straight price average. An equal weighted index is a type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund. The difference is one gives individual value and other gives one value to all.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the difference between value weighted index and equal weighted index?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the difference between value-weight index and equal weight index?

Different to equal-weight whcih gives the same weight, or importance, to each stock in a portfolio or index fund. Value-weighted method is placing heavy weight diffrently depending on the size of company's market value.


What is the symbol for First Trust NASDAQ-100 Equal Weighted Index Fund in NASDAQ?

The symbol for First Trust NASDAQ-100 Equal Weighted Index Fund in NASDAQ is: QQEW.


What is the market cap for First Trust NASDAQ 100 Equal Weighted Index Fund QQEW?

As of July 2014, the market cap for First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) is $430,768,079.04.


Is The Dow Jones Industrial Average a market value weighted or price weighted index?

The Dow Jones Industrial average is a price weighted index.


Is the Dow Jones a price weighted average?

Yes, the Dow Jones Industrial Index is a price weighted index.


What is the relationship between Trade weighted Index and the export receipts?

The relationship between the trade weighted index and the export receipts is that they are both related to money exchanges for goods in other countries. The receipts are given in either a port, sea, plane, or by any person.


Which are better market cap weighted index funds or equal weight index funds?

Market weight index funds weight the individual company's within the index by market capitalization (shares outstanding multiplied by share price). Equal weight index funds give equal weight in the fund to each company, regardless of its share price. When measuring the performance of each of these types of index funds there is no clear winner. Researchers Dash and Loggie found each type of fund outperformed during different market conditions. The S & P 500 equal weight index fund underperformed the market capitalization weighted fund during strong markets but seemed to perform better than the market cap weighted fund during weak markets.


Is the NASDAQ a price weighted index?

Yes


What is the symbol for Compass EMP US 500 Volatility Weighted Index ETF in NASDAQ?

The symbol for Compass EMP US 500 Volatility Weighted Index ETF in NASDAQ is: CFA.


What is the index error in theodolite?

Half of the difference between the two positions is called the "index error".


What is the symbol for Compass EMP US 500 Enhanced Volatility Weighted Index ETF in NASDAQ?

The symbol for Compass EMP US 500 Enhanced Volatility Weighted Index ETF in NASDAQ is: CFO.


Is there any difference between index and indicator?

yes there iis