A Fundamental Approach To Weighting Stocks: The S&P 500 Revenue-Weighted Index

S&P Dow Jones Indices 2.53K Follower s Follow 5 Share Save Play ( 4min ) Comments Summary The S&P 500 Revenue-Weighted Index assigns company weights based on revenue rather than market capitalization. In this blog, we review the index’s performance characteristics, valuation metrics and diversification profile. Year-to-date, the S&P 500 Revenue-Weighted Index has outperformed the S&P 500 by 2.18% and by 1.57% over the past year. honglouwawa/iStock via Getty Images By Hugo Barrera The S&P 500 ® Revenue-Weighted Index assigns company weights based on revenue rather than market capitalization. By anchoring weights to revenue, the index may help reduce concentration risk, limit weights in higher-valued stocks and increase representation This article was written by S&P Dow Jones Indices 2.53K Follower s Follow At S&P Dow Jones Indices, our role can be described in one word: essential. We’re the largest global resource for index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based upon our indices than any other index provider in the world; with over 1,000,000 indices, S&P Dow Jones Indices defines the way people measure and trade the markets. We provide essential intelligence that helps investors identify and capitalize on global opportunities. S&P Dow Jones Indices is a division of S&P Global, which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spdji.com.Copyright © 2016 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. This material is reproduced with the prior written consent of S&P DJI. For more information on S&P DJI please visitwww.spdji.com. For full terms of use and disclosures please visit www.spdji.com/terms-of-use.

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