A type of exchange traded fund (ETF), specifically an equity ETF, that consists of stocks selected and weighed within its overall composition based on the size of each issuing company’s market capitalization. Market capitalization (market cap) reflects the total value of an issuer’s shares outstanding.

It is a type of passive fund that selects stocks that will contribute to its defined goals and strategy based on the total market value of the issuers of its component stocks.

This ETF gives investors broad exposure to publicly traded companies listed on certain exchanges, mainly taking into consideration their size as reflected in their market cap.