Weight caps have been placed on index constituent shares, in order to limit the impact of a single share in an index. A weight cap has been set for each index.
In practice, if after the constituent shares are weighted according to the original data, the weight of one or more shares exceeds the cap set for the index, the calculation will be adjusted so as to bring the weight down to the weight cap.
The mechanism which adjusts (lowers) the "original" weight of a share to the weight cap is called the weight cap factor. This factor is used to calculate the actual weight of shares in the index.
The specific weight cap limit for each index can be found in the "About Index" tab in index page.
