“An equal-weighted index is a stock market index – comprised of a group of publicly traded companies – that invests an equal amount of money in the stock of each company that makes up the index. Thus, the performance of each company’s stock carries equal importance in determining the total value of the index,” according to the Corporate Finance Institute (CFI).
Value Play on Growth
Due to its long-running status as a growth haven, the Nasdaq-100 isn’t often thought of a value destination, but by introducing, equal weighting, investors can add a dash of the value factor to the equation.