What are constituents and what does index weight represent? : Tickertape

What are constituents and what does index weight represent? Print

Modified on: Tue, 10 Nov, 2020 at 1:08 PM

A constituent is a company whose shares are part of the index and are used to calculate the index value.

The weight of the constituent in the overall index is based on market capitalisation. Index weight represents the percentage of shares in the index. The contribution change measures the contribution of each constituent towards the movements in the index value.

The constituents can be sorted by market capitalisation or sector.

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What are constituents and what does index weight represent? Print

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