What is a market cap weighted index
With a price-weighted index, the index trading price is based on the trading prices of the individual securities (stocks) that comprise the index basket (known as components). In other words, the stocks with the higher prices will have more impact on the movement of the index than stocks with lower prices, since their price is "weighted" higher. A price-weighted index is a stock market index where each stock makes up a fraction of the index that is proportional to its price per share.