Major Smart Beta Question

The calculation of the S&P 500 is based upon the market cap of its components. The Dow Jones Industrial Average is the oldest market index and it’s calculation is extremely unusual because it is a price weighted series. Because it is a price weighted series, it gives equal weight to equal dollar changes and thus high price stocks carry more weight than low price stocks. A 10% change in a $200 dollar stock will have a much larger as impact on the index than would a 10% change in a $20 stoc...