How to create a equal weight index?

I created this public simulation to simulate the returns of an equal weight portfolio holding all stocks in the Prussell 3000 universe.

But the numbers are off. It is leveraging up at times by 150%.

Can anyone figure out the issue?

Run it with starting capital of 100M instead of 100K. Our backtest does not use fractional shares, so it's buying at least 1 share of each stock resulting in margin.

FYI. creating an index from a universe (cap weighted or equal weighted), that you can use as a benchmark, is something we're doing next.

4 Likes

@Marco
Thanks!

@marco
Much better, but it still doesn't match this public screen which should be the same.