A share's weight in the index reflects the ratio between its Index adjusted free float market cap. and the total Index adjusted free float market cap. of all the index constituents.
The weight of each share is calculated on a daily basis, before trading starts, using the following formula:
where:
|
Wit |
- |
The weight os Share i in the index on day t. |
|
n |
- |
The number of shares on the list. |
|
Qit |
- |
The IANS of share i the last time IANS was updated before t day,. |
|
Pit |
- |
The base price of share i on day t. |
|
Fi |
- |
The Index adjusted free float rate in share i on the last IANS update before day t. |
To minimize the impact of a single share's volatility on the index as a whole, a cap has been predetermined for the shares in the index. Any "surplus weight" of the biggest shares in the index gets distributed proportionally between the rest of the shares in the index, whose weights are amended accordingly.
The following shows the maximal weight a share can have in the continuous trading equity indices:
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