It made up 6.6 per cent of the S&P/TSX composite index at the end of May. If the index had been split equally between its 234 stocks, RBC would have made up only about 0.4 per cent of it.

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.

VLUE's holdings “are weighted according to both their market-capitalization and the strength of their value characteristics, rescaled to maintain sector neutrality. This approach allows the fund ...

For example, in recessions, the value-weighted index had a January average return of minus 0.30 per cent, while the equally weighed index had a 3.50-per-cent return and the government bond index a ...