How does ITB determine the component weight?

It's a float adjusted market cap, with further capping in the Select Speciality index series.

The benchmark index it is following is Dow Jones U.S. Select Home Construction Index.

The index is detailed here:
https://www.spglobal.com/spdji/en/indices/equity/dow-jones-us-select-home-construction-index/

The methodology is here regarding select indices, capping etc.
https://www.spglobal.com/spdji/en/d...methodology-dj-us-select-sector-specialty.pdf

Float adjustment defined here:
http://us.spindices.com/documents/index-policies/methodology-sp-float-adjustment.pdf
 
Years ago, HD's weight in ITB was closer to LOW's, but HD stock price has grown much faster, so HD's weight also has grown faster.
 
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