Index Weighting Methods: Market Cap, Equal Weight, or Your Own
Indexes lets you switch your basket between market cap, equal weight, and your own custom weights, then backtest each to compare. See how an equal-weight AI-infrastructure index behaved differently from a market-cap version against the S&P 500.
Educational only · Never places a trade
In short
Index weighting methods are the rules that decide how much of each holding an index carries, and the choice changes an index materially. Indexes supports the main index weighting methods so you can study each one: market cap weighting, where larger companies or coins carry more, equal weight, where every holding counts the same, and custom weights you set by hand. This is where market cap vs equal weight becomes concrete, because you can build one AI-infrastructure index weighted by market cap, clone it as an equal-weight version, and backtest both against the S&P 500 to see how the weighting alone shifted return and drawdown. Studying weighting this way turns an abstract concept into something you can see. These are hypothetical historical performance comparisons, and past performance does not guarantee future results. Indexes is an informational and educational tool only, it does not constitute investment advice, and it never places a trade, connects to a brokerage, or holds any money. The goal is to help you understand how weighting shapes an index.
What you get
Weighting, built for investors and analysts
Three ways to weight
Apply market cap, equal weight, or your own custom weights to any basket, so you can study the exact weighting method you want to understand.
Market cap vs equal weight
Build the same holdings both ways and backtest each, so the difference between market cap vs equal weight is a chart you can read, not a theory.
Custom weights by hand
Dial in your own tilt when neither standard method fits, so an AI-infrastructure index can lean the way your research suggests.
See weighting in action
Each scheme feeds straight into a backtest, so you learn how weighting shapes return and drawdown rather than guessing at its effect.
How it works
From holdings to a tracked index in four steps
Choose a scheme
Pick market cap, equal weight, or custom weights for your basket, depending on the weighting method you want to study.
Apply and adjust
Set the weights and watch the blend update, or hand-tune each holding until the index matches your intended tilt.
Backtest each version
Replay the market cap and equal weight versions through history to compare how the weighting alone changed the outcome.
Learn the difference
Use the comparison to understand weighting. Results are hypothetical, past performance is no guarantee, and Indexes never trades.
More features
Build your index and see how it backtests
Bundle stocks or crypto into your own weighted index, backtest it against real market history, and track it against the S&P 500 or BTC. No brokerage account and no spreadsheets. Indexes is educational and informational only, and it never places a trade.