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Does Morningstar cap the individual security weights in the Index?

April 26, 2017cap index individual morningstar security weights

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Does Morningstar cap the individual security weights in the Index?

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To enhance portfolio diversification, we cap the weights of individual holdings in the index at 10% of the portfolio. We redistribute the excess weights using a formula that maintains the order of the weights and preserves the relative weights for as many holdings as possible.