Index

RECENT NEWS
The Economic Times  Jan 6  Comment 
The market is looking good. The effect of cash ban has already been factored in. In general, we can see some upside in the market from here onwards.
Mondo Visione  Jan 4  Comment 
Ahead of the launch of TASE's indices reform on Feb. 9, 2017: TASE eases matters for medium and small sized companies, and has extended the target date for complying with the float rate for stocks included in the TA-90 and SME-60 indices Each...
The Hindu Business Line  Dec 31  Comment 
Nifty and Sensex rose over 2 per cent last week, showing signs of positive momentum
The Economic Times  Dec 30  Comment 
On Friday, the CSI300 index rose 0.4 per cent, to 3,309.99 points at the close, while the Shanghai Composite Index gained 0.2 per cent, to 3,103.40 points.
Mondo Visione  Dec 29  Comment 
In accordance with the article 3.3. of BIST-KYD Indices Ground Rules, periodic review for the BIST-KYD Corporate Eurobond Indices for the period January 2017 (January 2, 2017 – January 31, 2017) has been finalized. There is not any Eurobond to...
The Economic Times  Dec 29  Comment 
All NPS managers are well-known fund managers and therefore beating the benchmark index by them is be a big deal.
Mondo Visione  Dec 23  Comment 
Hong Kong Exchanges and Clearing Limited (HKEX) welcomes today's announcement by the Securities and Futures Commission (SFC) extending the eligible indices of Leveraged and Inverse Products (L&I Products) listed in Hong Kong to include Hong Kong...
Mondo Visione  Dec 19  Comment 
Bats Europe (Bats), the region’s largest equities exchange, today announced its eight new benchmark indices for the French, German, Swiss and Italian markets are now live. The indices, based on Bats market data, provide real-time,...
Mondo Visione  Dec 19  Comment 
On 19 December 2016, the following calculation methodologies came in force following Moscow Exchange's corporate restructuring whereby a 100%-owned subsidiary CJSC MICEX Stock Exchange had been consolidated into Moscow...




 
TOP CONTRIBUTORS

An index, when used with respect to financial markets, is a statistical measure of change in a securities market. Indexes, or indices (both are correct in American English), are imaginary portfolios of securities (usually stocks) representing a particular market or a portion of it.

This is the chart for the Dow Jones Industrial Average. Scroll down for a list of major world indices on Wikinvest.



Generally, an index has three main purposes:

  • An Index shows the performance of a basket of equities instead of just a single equity - IE an index is diversified.
  • An index can show the performance of a particular class of assets - for example, a biotechnology index would show the performance of a diverse group of biotech companies over time.
  • An index can also be used to provide a generic securities category for passive management and derivatives (passive investing).

Each index is calculated using its own methodology, and its value is expressed in terms of a change from an original base value. So the numerical value of an index is not as significant as the percent change in the index.

Investing in indexes is a way to invest in the performance of a broad market sector, or in the market as a whole. But to trade an index, an investor must buy or sell through a third party. Stock and bond market indexes are used to make mutual funds and exchange-traded funds (ETFs) that mirror the performance of the index. Regardless of security type, indexing can cover broad categories such as a Total Market Index like (VTI), index investing can also be more micro and track sectors such as Small Cap Brazilian Companies (BRF).

When investing in an Exchange Traded Funds that tracks an index, an investor buys or sells an entire group of stocks when trading that particular ETF - an example is the StreetTRACKS Dow Jones Global Titans Index Fund (DGT). Some indexes allow investors to put money into commodities - an example is the PowerShares DB Commodity Index Tracking Fund (DBC) - while others, like the Baltic Dry Index (BDI), are important economic indicators used to measure the rates under which services are sold in a particular industry (in the case of the BDI, dry bulk shipping). Still others are forward looking, measuring the anticipated volatility of the markets - an example is the Nasdaq Volatility Index (VXN).

Major World Index on Wikinvest

There are many products available to investors to give them exposure to international indices. Mutual Funds and ETFs are the most widely held instruments which investors use to track markets around the world. Some examples of Major World Indices would be MSCI Emerging Market Index (EEM), MSCI EFAE Index (EFA), or Vanguard Emerging Markets (VWO). These are just a few examples of common securities offered to investors seeking exposure to an international world market index.

It is important to consider the currency risks of investing in many international index funds as well as the potentially higher costs associated with the transactions needed to operate the fund (trading, taxes, etc).


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki