NASDAQ-100 Equal Weighted Index

DEFINITION of 'NASDAQ-100 Equal Weighted Index'

The equal-weighted version of the NASDAQ-100 Index, which consists of 100 of the largest, most actively traded non-financial U.S. companies listed on the Nasdaq. Each of the securities in this market-capitalization based index is initially set at a weight of 1%. The equal weighting means that the index's smaller companies contribute as much as its larger companies.

BREAKING DOWN 'NASDAQ-100 Equal Weighted Index'

This equal-weighted index offers an alternative to market-capitalization weighting, which is a more common method of weighting index funds. The NASDAQ-100 Equal Weighted Index is rebalanced quarterly and is reconstituted annually in December. There are several ETFs that track the movements of the index.

RELATED TERMS
  1. Equal Weight

    A type of weighting that gives the same weight, or importance, ...
  2. Nasdaq-100 Pre-Market Indicator

    An index of trading activity based on pre-market open prices ...
  3. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  4. Weighted

    A mathematical process by which figures and/or components are ...
  5. Nasdaq Composite Index

    A market-capitalization weighted index of the more than 3,00 ...
  6. Weighted Average

    An average in which each quantity to be averaged is assigned ...
Related Articles
  1. ETFs & Mutual Funds

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  2. Trading

    Strategies To Trade The Nasdaq Index

    The Nasdaq is by far the best-known technology index in the world, and there are plenty of strategies to trade on the Nasdaq using ETFs and options.
  3. ETFs & Mutual Funds

    Top Four ETFs That Track The Nasdaq 100 (QQQ,TQQQ,QLD,QQEW)

    There's a Nasdaq 100 ETF for investors and traders of all stripes, from the basic Qubes, to the turbocharged ProShares Ultra and UltraPro ETFs, and the Equal Weighted ETF.
  4. Managing Wealth

    Choosing The Right ETF Index To Reach Your Goals

    The key to choosing ETFs for your portfolio is understanding how they pick stocks and making sure their investment philosophy matches yours.
  5. ETFs & Mutual Funds

    3 Expensive Growth ETFs Worth Your While (PWB, QQXT)

    Compare the performances of three growth ETFs with their expense ratios, and consider the cost efficiency of the ETFs having higher management expenses.
  6. ETFs & Mutual Funds

    Index Investing: What Is An Index?

    An index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. It would be too difficult to track every single security trading in the ...
  7. ETFs & Mutual Funds

    QQQ: PowerShares QQQ Trust ETF

    Learn more about one of the most popular and widely traded exchange-traded funds in the world: Invesco PowerShares QQQ Trust (QQQ) ETF.
  8. Trading

    Nasdaq-100 Set for Strong Recovery (QQQ)

    The Nasdaq-100 could resume its long-held leadership role and lift major indices to new 2016 highs.
  9. Markets

    Understanding Capitalization-Weighted Indexes

    A capitalization-weighted index is a market index whose individual components are weighted according to their market capitalization.
  10. ETFs & Mutual Funds

    Strategies For Determining The Market's True Worth

    Learn the strengths and weaknesses of passive and active management when trying to uncover the overall market's worth.
RELATED FAQS
  1. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The ... Read Answer >>
  2. What does the S&P 500 index measure and how is it calculated?

    Learn about what exactly the S&P measures and why it's used by market participants as a tool to understand the broader stock ... Read Answer >>
  3. Do you recommend the Nasdaq 100, S&P 500, or a 50/50 allocation?

    My job is now offering two large-cap stocks. The S&P 500 Index and Nasdaq 100 Index. I've read a bit about the debate ... Read Answer >>
  4. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  5. What's the difference between moving average and weighted moving average?

    Moving averages are one of the most popular tools used by active traders to measure momentum. In this FAQ, we'll take a look ... Read Answer >>
  6. What is a capitalization-weighted index?

    Learn about a capitalization-weighted index and how to calculate the value of a capitalization-weighted index through a simple ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center