Understanding SPX Weighting: Cap-Weight vs. Equal Weight
The S&P 500 index is the benchmark of American large-cap equities. That means companies with larger market capitalizations carry more influence on the index’s performance. The top 10 companies (Apple, Microsoft, Amazon, etc.) account for nearly 30% of the index’s total weight—despite making up only 2% of its constituents. By contrast, the equal weight S&P…
