NYSE Arca Tech 100

NYSE Arca Tech 100 Index

The NYSE Arca Tech 100 Index is a price-weighted index comprised of common stocks and ADRs listed on US exchanges. Companies from different industries that produce or deploy innovative technologies to conduct their business are considered for inclusion. Modeled as a multi-industry technology index, the objective of the NYSE Arca Tech 100 Index is to provide a benchmark for measuring the performance of leading technology-related companies operating across a broad spectrum of industries.

Price Weighted Construction

Many market Indexes are constructed using a market-cap weighting methodology. While market cap weighted indexes are often top-heavy and can be highly concentrated in a few large holdings. The NYSE Arca Tech 100 Index uses a price-weighting methodology. This means the index holds the same number of shares of each security, thus the price of the security is the influencing factor to the value of the index. Higher priced securities have a higher weight in the index than lower priced securities, as the shares of each component are equally held.