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. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  2. NASDAQ Global Select Market Composite

    A market capitalization-weighted index made up of U.S.-based ...
  3. NASDAQ OMX 100 Index

    A market-capitalization weighted index made up of the 100 largest ...
  4. NASDAQ Global Market Composite

    An index made up of stocks that represent the Nasdaq Global Market. ...
  5. NYSE Amex Composite Index

    An index made up of stocks that represent the NYSE Amex equities ...
  6. Equal Weight

    A type of weighting that gives the same weight, or importance, ...
Related Articles
  1. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  2. Mutual Funds & ETFs

    The Hidden Differences Between Index Funds

    These funds don't all match index returns. Find out how to avoid costly surprises.
  3. Options & Futures

    Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  4. Options & Futures

    Why The Dow Matters

    Although the DJIA only includes 30 stocks, it can tell you a lot about the market as a whole.
  5. Economics

    The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?
  6. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  7. Mutual Funds & ETFs

    The 3 Largest Global Ex-U.S. ETFs (VEU, VXUS)

    Discover global ex-U.S. exchange-traded funds and why you may want to use them in your portfolio, and learn about the three largest ETFs available.
  8. Mutual Funds & ETFs

    CDC vs. DLN: Comparing Dividend-Oriented ETFs

    Take a look at an overview and comparison of two dividend-oriented ETFs to learn the respective advantages and disadvantages of each fund.
  9. Mutual Funds & ETFs

    JJE vs. UBN: Comparing Energy ETFs

    Take a look at an overview, comparison and evaluation of two lesser-known commodity ETFs that offer exposure to the energy sector.
  10. Mutual Funds & ETFs

    The 3 Best Smart Beta ETFs for 2016 (PRF, FNDX)

    Compare ETF performance histories when investing in smart beta ETFs for improved value investing strategy and weighting by financial accounting metrics.
RELATED FAQS
  1. What is the difference between exchange traded funds (ETFs) and closed end funds?

    Understand the difference between exchange-traded funds and closed-end funds, and learn how investors can use each to meet ... Read Answer >>
  2. Why are MLP ETFs so expensive?

    Discover master limited partnership (MLP) ETFs and the legal characteristics that make them so expensive as well as the structure ... Read Answer >>
  3. What advantages do exchange-traded funds have over mutual funds?

    Exchange-Traded Funds (ETFs) are growing ever more popular, as they were created to combine the best characteristics of both ... Read Answer >>
  4. How do leveraged ETFs compound volatility? (SPXL)

    Learn about the mechanics behind positive and negative compounding in leveraged ETFs and discover why negative compounding ... Read Answer >>
  5. What is an appropriate large cap mutual fund fee?

    Discover what an appropriate fee for a large-cap mutual fund should be, and learn how choosing index mutual funds can lead ... Read Answer >>
  6. Why don't mutual funds trade like stocks?

    Learn how mutual funds differ from exchange-traded funds (ETFs) in how they are traded. Also, learn what fees are involved ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center