Capped Index

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Dictionary Says

Definition of 'Capped Index '

An equity index that has a limit on the weight of any single security. Thus, a capped index sets a maximum percentage on the relative weighting of a component that is determined by its market capitalization. The rationale behind a capped index is to prevent any single security from exerting a disproportionate influence on an index.
Investopedia Says

Investopedia explains 'Capped Index '

For example, in Canada, the S&P/TSX Capped Composite index that is maintained by Standard & Poor's restricts the weighting of any component to a maximum of 10%, regardless of its market capitalization. The S&P/TSX Capped Composite index was introduced in 2002, subsequent to the rise and fall of Nortel Networks, which at its peak accounted for almost one-third of the total market capitalization of all stocks on the former TSX-300 index.
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'Capped Index'

  • Series 7 Study Guide - Derivatives - Index Options | Investopedia

    http://www.investopedia.com/exam-guide/series-7/derivatives/index-options.asp
    Investopedia's Series 7 Online Study Guide. In this section types of indexes, choosing
    an index, advantages, settlement and capped index options. ...

  • Profit On Your Home's Price - Even If It's Falling

    http://www.investopedia.com/articles/pf/07/house_prices.asp
    ... The FTSE NAREIT All Residential Capped Index measures the performance of the
    residential real estate, healthcare and self storage sectors of the US equity ...

  • REITs Continue to Look Solid

    http://stocks.investopedia.com/stock-analysis/2011/REITs-Continue-to-Look-Solid-ICF-FIO-REZ0304.aspx
    ... As a play on the strengthening health of both apartment and office real estate,
    the iShares FTSE NAREIT Industrial/Office Capped Index (NYSE:FIO) and iShares ...

  • Flying Under The Radar, But Don't Sleep On Peru

    http://stocks.investopedia.com/stock-analysis/2009/Flying-Under-The-Radar-But-Dont-Sleep-On-Peru-BAP-BVN-EPU-EWZ-NEM1021.aspx
    ... it trails the iShares MSCI Brazil Index (NYSE:EWZ) in returns over the last three
    months, the newly minted iShares MSCI All Peru Capped Index (NYSE: EPU), the ...

  • Taking A Shine To Copper

    http://stocks.investopedia.com/stock-analysis/2010/Taking-A-Shine-To-Copper-ECH-EPU-COPX-CU-JJC0810.aspx
    ... Both the iShares MSCI Chile (NYSE:ECH) and iShares MSCI All Peru Capped
    Index (NYSE:EPU) represent ways to access these nations. ...

  • A Leveraged Energy Bet With Russia

    http://stocks.investopedia.com/stock-analysis/2011/A-Leveraged-Energy-Bet-With-Russia-EEM-RBL-RSX-ERUS-OGZPY-GZNFY-LUKOY1021.aspx
    ... However, investors interested in the leveraged action on rising energy prices
    should use the iShares MSCI Russia Capped Index (Nasdaq: ERUS). ...

  • Bet On Rising Energy With Russia

    http://stocks.investopedia.com/stock-analysis/2011/Bet-On-Rising-Energy-With-Russia-MTL-ERUS-RSX-WBD-XRU0412.aspx
    ... For investors wanting to make the most of Russia's energy sector, the iShares MSCI
    Russia Capped Index (NYSE:ERUS) allocates nearly 55% towards energy via oil ...

  • Long-Term Investing With Equity Index CDs

    http://www.investopedia.com/articles/bonds/09/equity-index-cds.asp
    ... Instead, it would be capped at 10%. Advantages Equity Index CDs offer a
    short-term commitment generally between three and five years. ...

  • Best Country Investments For The Remainder Of 2010

    http://stocks.investopedia.com/stock-analysis/2010/Best-Country-Investments-For-The-Remainder-Of-2010-RSX-EPU-TEO-YPF-PAM0121.aspx
    ... New ETF Now Available Peru investors can now access that country's market
    via the iShares MSCI All Peru Capped Index Fund (NYSE:EPU). ...

  • 5 Investments For The Last Week Of 2010

    http://stocks.investopedia.com/stock-analysis/2010/5-Investments-For-The-Last-Week-Of-2010-HLF-RUSHA-N-SGY-EPU1230.aspx
    ... iShares MSCI All Peru Capped Index ETF (NYSE:EPU) is the only ETF to make the list
    and as the name says, it invests in companies based in the country of Peru. ...

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