Using market values for indexing gives more portfolio weight to the stocks with positive price errors and less portfolio weight to the stocks with negative price errors. Market-valuation-indifferent indexing—such as equal weighting or weighting by number of employees, number of customers, or sales—relies on averaging over hundreds of stocks to give equal weight to the two groups.
![Bridge over ocean](/-/media/images/hero/rpc-theme-heros/bridge-default.jpg?w=2560&hash=C67CE44B69F875C23628FEF2E3F26808)