How does ITB determine the component weight?

Discussion in 'ETFs' started by ggnn2020, Aug 17, 2020.

  1. ggnn2020

    ggnn2020

  2. jharmon

    jharmon

    It's a float adjusted market cap, with further capping in the Select Speciality index series.

    The benchmark index it is following is Dow Jones U.S. Select Home Construction Index.

    The index is detailed here:
    https://www.spglobal.com/spdji/en/indices/equity/dow-jones-us-select-home-construction-index/

    The methodology is here regarding select indices, capping etc.
    https://www.spglobal.com/spdji/en/d...methodology-dj-us-select-sector-specialty.pdf

    Float adjustment defined here:
    http://us.spindices.com/documents/index-policies/methodology-sp-float-adjustment.pdf
     
    ggnn2020 and DaveV like this.
  3. DaveV

    DaveV

    Years ago, HD's weight in ITB was closer to LOW's, but HD stock price has grown much faster, so HD's weight also has grown faster.