Capitalization-Weighted Index: Definition, Calculation, Example

S&P 500 Index Construction
The S&P only uses free-floating shares when calculating market cap, meaning the shares that the public can trade. The S&P adjusts each company's market cap to compensate for new share issues or company mergers. The value of the index is calculated by totaling the adjusted market caps of each company and dividing the result by a divisor. The divisor is proprietary information of the S&P and is not released to the public. The S&P Index (SPX) is not a total return index and does not include cash dividend gains for the companies listed.
5

However, you can calculate a company's weighting in the index, which can provide investors with valuable information. If a stock rises or falls, you can get a sense as to whether it might have an impact on the overall index. For example, a company with a 10% weighting will have a greater impact on the value of the index than a company with a 2% weighting.

The S&P 500 is one of the most widely quoted American indexes because it represents the largest publicly traded corporations in the U.S. The S&P 500 focuses on the U.S. market's large-cap sector and is also a float-weighted index (a type of capitalization weighting), meaning company market caps are adjusted by the number of shares available for public trading.

FAT FACT:
The S&P 500's most recent rebalancing was announced on Sep. 1, 2023, and took effect before markets opened on Sept. 18, 2023. Blackstone Inc. and Airbnb Inc. replaced Lincoln National Corp. and Newell Brands Inc., respectively.

S&P 500 Competitors
S&P 500 vs. Dow Jones Industrial Average (DJIA)
Another common U.S. stock market benchmark is the Dow Jones Industrial Average (DJIA). The S&P 500 is often the institutional investor's preferred index given its depth and breadth, while the DJIA has historically been associated with significant equities from the retail investor's point of view. Institutional investors perceive the S&P 500 as more representative of U.S. equity markets because it comprises more stocks across all sectors (500 versus the Dow's 30).

Furthermore, the S&P 500 uses a market-cap weighting method, giving a higher percentage allocation to companies with the largest market caps, while the DJIA is a price-weighted index that gives companies with higher stock prices a higher index weighting. The market-cap-weighted structure tends to be more common than the price-weighted across U.S. indexes.

S&P 500 vs. Nasdaq
Nasdaq is a global electronic marketplace for trading securities. There are several equity market indexes that include stocks traded on Nasdaq. Note that a given stock included in the S&P 500 Index may also be in one or more of the various Nasdaq indexes.

Among the most-watched Nasdaq stock indices are the:

Nasdaq 100 Index, which includes 100 of the largest, most actively traded common equities listed on Nasdaq.
Nasdaq Composite Index, which the media often simply refers to as the Nasdaq (and which includes more than 2,500 common stocks that trade on Nasdaq).
Nasdaq Global Equity Index (NQGI), which includes international stocks.
PHLX Semiconductor Sector Index (SOX), which is the leading barometer of stocks related to the semiconductor industry.
OMX Stockholm 30 Index (OMXS30), which includes 30 actively traded stocks on the Stockholm Stock Exchange.

S&P 500 vs. Russell Indexes
The S&P 500 is a member of a set of indexes created by Standard & Poor's. The Standard & Poor's set of indexes is like the Russell index family in that both are market-cap-weighted indexes unless stated otherwise (as in the case of equal-weighted indexes, for example).

However, there are two large differences between the construction of the S&P and Russell families of indexes. First, Standard & Poor's chooses constituent companies via a committee, while Russell indexes use a formula to choose stocks to include. Second, there is no name overlap within S&P style indices (growth versus value), while Russell indexes will include the same company in both the value and growth style indexes.

S&P 500 vs. Vanguard 500 Fund
The Vanguard 500 Index Fund seeks to track the price and yield performance of the S&P 500 Index by investing its total net assets in the stocks comprising the index and holding each component with approximately the same weight as the S&P index. In this way, the fund barely deviates from the S&P, which it is designed to mimic.

The S&P 500 is an index, so it can't be traded directly. Those who want to invest in the companies that comprise the S&P must invest in a mutual fund or exchange-traded fund (ETF) that tracks the index, such as the Vanguard 500 ETF (VOO).

感谢分享。

全是英文，这算什么。