Index

RECENT NEWS
Clusterstock  2 hrs ago  Comment 
By Jessica Toonkel (Reuters) - Stock index provider MSCI Inc is considering changing its rules to allow shares of Alibaba Group Holding [IPO-BABA.N] and other companies that list their shares in faraway markets to be included in its widely used...
MarketWatch  6 hrs ago  Comment 
U.S. stock indexes inching lower at Friday open
The Economic Times  Sep 11  Comment 
it is the small cap and the midcap stocks or the cash market stocks which might show momentum, play some kind of catch-up in terms of the underperformance and outperformance.
The Economic Times  Sep 11  Comment 
The broader markets outperformed the benchmark indices with BSE mid-cap and small-cap indices both closing higher by over 1 per cent each.
The Economic Times  Sep 11  Comment 
Dollar-denominated RTS index was down 0.06 per cent at 1,238 points, while its rouble-based peer MICEX was 0.15 per cent higher at 1,471 points.
MarketWatch  Sep 10  Comment 
Nasdaq in the lead as stock-market indexes rise to day's highest levels
Mondo Visione  Sep 10  Comment 
Newedge, a global leader in multi-asset brokerage and clearing, today announces the August performance data for its CTA performance indices.  Following a tough month for returns in July, all managed futures indices calculated by Newedge...
New York Times  Sep 8  Comment 
The Dow fell 25.94 points, the S.&P. 500 lost 6.17 points, but the Nasdaq, bolstered by a rally in Yahoo shares, gained 9.39 points.
Forbes  Sep 5  Comment 
How do providers decide what goes into art indices and are you aware of what's left out?
Mondo Visione  Sep 5  Comment 
Monthly review: August 2014 (pdf, 654 Кb) All reviews of Moscow Exchange Indices




 
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