Equally Weighted Portfolio

A type of weighting that gives the same weight, or importance, to each stock in a portfolio. The smallest companies are given equal weight to the largest companies in an equal-weight portfolio. This allows all of the companies to be considered on an even playing field.

Equally weighted portfolio example:

Market cap weighted portfolio example:

All of our stock trading systems run equally weighted portfolios to reduce risk of one stock having big impact on portfolio performance.