Index funds are the most popular investment product used today. Most of those funds are based on a market cap weighted index.
But do you know how market cap weighting works? Or how it affects your portfolio? It pays to know how the index works, so you understand how the fund and your money is invested.
Cap Weighted Index
An index is used to measure the performance of financial markets. A market cap weighted index uses, you guesses it, market cap to build the index. Market cap is the stock price multiplied by the total number of outstanding shares.
In a cap weighted index, the stock with the largest market cap gets the highest weighting in the index. The second largest gets the second highest weighting and so on, down to the smallest market cap stock. But it doesn’t end there. Continue Reading…
Just like arguments, there are two sides to every investment. Behind that are investors reacting to news, both good and bad. When enough people believe the news, it moves prices. Sometimes that information is spot on and it warrants a price swing. Other times it’s not, yet the majority reacts anyways. That is where contrarian investing comes in.
There are a number of great tools you can use to simplify and streamline your investment process. An investor armed with a 
The banking sector was hit hard by low interest rates. Now that rates are rising, it stands to reason both national and regional banks should do better with higher interest rates. An easy way to play this is through a bank ETF.