By Kim Clark 
From Kiplinger’s Personal Finance

Today, there are an estimated 3 million indexes that provide benchmarks against which to measure investment performance and serve as recipes for the portfolios of a vast number of indexed mutual and exchange-traded funds.

Here’s a quick summary of some of the most common indexes. Most weight their members based on market value, calculated by multiplying the stock price by the number of outstanding shares.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information&nbsp;provided.

By Kim Clark From Kiplinger's Personal Finance Today, there are an estimated 3 million indexes that provide benchmarks ...{ai:summary}Indexes: the benchmarks used to evaluate investment performance, and the recipes for portfolios of mutual and exchange-traded funds. The S&P 500 index, created in 1957, makes up around 80% of the US stock market. The Dow Jones industrial average, created in 1896 by Wall Street Journal founder Charles Dow, now follows a simple math and weights each member by stock price. The Russell 2000 measures small-cap stocks and the S&P SmallCap 600 is a more selective list of small companies. The FTSE Global All Cap ex US tracks 98% of the world's market outside the US and the MSCI EAFE tracks large and midsize stocks in 21 developed countries globally. Finally, the Bloomberg U.S. Aggregate Bond tracks U.S. taxable, investment-grade bonds. #economy

What You Need to Know About Indexes

Loading...