##  [# Equal-Weighted Index Definition](/sections/equal-weighted-index-definition) 

 

# Equal-Weighted Index Definition

 

 

Learn the definition of equal-weighted index and other ETF terminology from the etf.com glossary.



 

 

 

 

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[By ETF Glossary](/authors/etf-glossary)

 Jan 08, 2024

 Edited by: ETF.com Staff

 

 

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## Learn more about Equal-Weighted Indexes

An Equal-Weighted Index, in the realm of ETFs, deviates from traditional market-cap-weighted indices by assigning the same weight to each constituent regardless of its market capitalization. This innovative approach provides investors with a more balanced representation of the entire index, mitigating the dominance of sectors and larger companies. Equal-weighted ETFs offer a diversified exposure to a broad range of securities, fostering a more democratic distribution of risk and return. Investors gravitate towards these ETFs for a comprehensive and inclusive investment strategy that aligns with the principle of diversification by reducing concentration risk associated with market-cap-weighted indices.

### Related Terms

[Market Capitalization](/etf-education-center/etf-glossary/market-capitalization), [Diversification](/etf-education-center/etf-glossary/diversification)

 
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 [ ETF Glossary ](/authors/etf-glossary) 

 

 

  ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock…   [View Bio](/authors/etf-glossary)

 



 

 


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