Index

RECENT NEWS
Mondo Visione  Jun 25  Comment 
Nasdaq (Nasdaq:NDAQ) today announced the Nasdaq Closing Cross was used for the 13th consecutive year to rebalance Nasdaq-listed securities in the entire family of U.S. Russell indexes during its annual reconstitution. Approximately 933 million...
MarketWatch  Jun 24  Comment 
Friday was supposed to be a day when market moves in individual stocks was due to the annual reconstitution of the Russell indexes
The Hindu Business Line  Jun 20  Comment 
Realty indexes jumped as SEBI has relaxed the investment norms.Nifty realty index rose as much as 1.2 per cent to a year high.S&P BSE realty index gained as much as 1.2 per cent to highest since J...
The Hindu Business Line  Jun 19  Comment 
Both indices are range-bound with a negative bias. Investors must continue to be cautious
MarketWatch  Jun 17  Comment 
The major market indexes may be declining in morning trade Friday, but most stocks are trading higher, reversing the divergence witnessed in the previous session. The number of advancing stocks exceeded the number of decliners by an 1,817-to-942...
MarketWatch  Jun 16  Comment 
The Big 3 major market indexes may have swung sharply higher into Thursday's close, but market internals showed that most stocks fell on the day. The number of declining stocks exceeded the number of advancing stocks by a 1,542-to-1,476 margin on...
Mondo Visione  Jun 14  Comment 
Chicago Board Options Exchange® (CBOE®) announced today that it has entered into an exclusive licensing agreement with Social Market Analytics (SMA) to develop a series of sentiment-based strategy benchmark indexes based on SMA’s social media...
Clusterstock  Jun 13  Comment 
The FTSE100 has new competition.  Bats Global Markets, the exchange operator and trading specialist, is launching a series of UK-focused benchmark indices. There will be 18 different indices in total, covering large and small cap...
The Hindu Business Line  Jun 11  Comment 
After recording a seven-month high, the indices have started falling. Be cautious
Mondo Visione  Jun 9  Comment 
In May, Moscow Exchange"s Indices reflected the negative trend on the Russian stock market. The MICEX Index was down 2.77% to 1,899.01 (from 1,953.05 on 29 April), while the dollar-denominated RTS Index fell 4.92% to 904.33 (from 951.11). More...




 
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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).


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