Index
An index is a calculated measure of the combined performance of a defined group of securities or other assets, such as a market, sector or asset class. It is a number rather than an investment, and it is built to a published rulebook.
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Index Weighting
Index weighting is the rule that sets how much each constituent contributes to an index's return. Common schemes include market-capitalization (often free-float-adjusted) weighting, equal weighting, price weighting and factor- or fundamental-based weighting.