For example, in a market cap-weighted index like the S&P 500, tech giants like Apple, Microsoft, and Google make up a significant portion of the index’s total value.

In price-weighted indexes, stocks with higher share prices have more influence on index value than stocks with lower share prices. This happens naturally if an index is not weighted by any other ...

That's because at some point, overvalued companies will return to its fair value. Investors can equate a market-weight index fund with the momentum investing strategy. This approach invests in ...