DEFINITION of 'NASDAQ100 Equal Weighted Index'
The equalweighted version of the NASDAQ100 Index, which consists of 100 of the largest, most actively traded nonfinancial U.S. companies listed on the Nasdaq. Each of the securities in this marketcapitalization 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.
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BREAKING DOWN 'NASDAQ100 Equal Weighted Index'
This equalweighted index offers an alternative to marketcapitalization weighting, which is a more common method of weighting index funds. The NASDAQ100 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

Equal Weight
A type of weighting that gives the same weight, or importance, ... 
Nasdaq100 PreMarket Indicator
An index of trading activity based on premarket open prices ... 
Weighted Average Market Capitalization
A stock market index weighted by the market capitalization of ... 
Weighted
A mathematical process by which figures and/or components are ... 
Weighted Average
An average in which each quantity to be averaged is assigned ... 
Arithmetic Index
An index of securities that uses an arithmetic sum to determine ...
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