The Morningstar Dictionary: Market cap weighting

The traditional method of passive investing is the least expensive to implement. Morningstar's Christian Charest explains how it works.

Christian Charest 2 February, 2018 | 6:00PM

 

 

Christian Charest: In the context of investing in exchange-traded funds, you may often hear of an underlying benchmark described as "market-cap weighted." With the advent of many new strategies that rely on various factors and other methods of enhanced indexing, market-cap-weighted indexes are now seen as the more traditional method of passive investing.

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Christian Charest

Christian Charest  

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