The purpose of the representation factor is to ensure that a stock, market, or sector does not exceed a maximum index capitalization in the respective index as of specific reference dates (capping).
The representation factor can take values between 0.01 and 1.00.
Depending on the index, different weighting limits are applied:
- Country indices
Weighting limit (stock)
- Regional indices
Weighting limit (stock / market)
- Sector indices
Weighting limit (stock / market / sector)
