The wide assortment of stocks in index funds makes you somewhat diversified. (businessinsider.com)
For capitalization weighted index, the value of the index is determined by the level of capitalization of each component stock in the index. (myfinancekits.com)
That means weighting stocks in an index by qualities such as earnings, cash flow, dividends and book values rather than the sheer size of their market caps. (canadianbusiness.com)