Index Investing: The Wilshire 5000 Total Market Index
AAA
  1. Index Investing: Introduction
  2. Index Investing: What Is An Index?
  3. Index Investing: The Dow Jones Industrial Average
  4. Index Investing: The Standard & Poor's 500 Index
  5. Index Investing: The Nasdaq Composite Index
  6. Index Investing: The Wilshire 5000 Total Market Index
  7. Index Investing: The Russell 2000 Index
  8. Index Investing: Other Indexes
  9. Index Investing: Index Funds
  10. Index Investing: Conclusion

Index Investing: The Wilshire 5000 Total Market Index


If you thought the S&P 500 and Nasdaq Composite Index included a lot of companies the Wilshire 5000 Total Market Index is an even larger one. Contrary to what its name suggests, the Wilshire 5000 Index contains over 3,500 stocks that trade in the U.S. Investors often refer to the Wilshire as the "total market index" because it wasdesigned to measure the entire U.S. stock market.

Created By: Wilshire Associates in 1980.
Number of Companies: 3,000 ~ 5,000
Types of Companies: All U.S. equity securities with readily available price data.
Selection Criteria: All primary equity issues for U.S. companies trading on a U.S. exchange with readily available prices. Bulletin board, ADRs, preferred, mutual funds are excluded.
How it\'s Calculated: The Wilshire Total Market Index is market-capitalization weighted.

Advantages: It covers virtually all of the public companies in the U.S.
Disadvantages: The Wilshire only contains companies headquartered in the U.S., leaving out many foreign companies. It is also similar to the S&P 500 in the sense that the top 10% of the companies in the index account for over 75% or so of the index\'s value.
Investing: You can buy mutual funds and ETFs that represent this index.
Index Investing: The Russell 2000 Index

  1. Index Investing: Introduction
  2. Index Investing: What Is An Index?
  3. Index Investing: The Dow Jones Industrial Average
  4. Index Investing: The Standard & Poor's 500 Index
  5. Index Investing: The Nasdaq Composite Index
  6. Index Investing: The Wilshire 5000 Total Market Index
  7. Index Investing: The Russell 2000 Index
  8. Index Investing: Other Indexes
  9. Index Investing: Index Funds
  10. Index Investing: Conclusion
RELATED TERMS
  1. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  4. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  5. Historic Pricing

    A method for calculating the value of an asset using the last ...
  6. Lion economies

    A nickname given to Africa's growing economies.
  1. What is the difference between pips, points, and ticks?

    Learn the differences between points, ticks and pips and how each are used by investors to measure price changes in stocks, ...
  2. Does index trading increase market vulnerability?

    Learn how the rise in popularity of passive ETFs and mutual funds tracking indexes has increased the correlation among stocks, ...
  3. What does a high turnover ratio signify for an investment fund?

    Find out more about the turnover ratio, what the turnover ratio measures and what a high turnover ratio indicates about an ...
  4. What is the difference between passive and active asset management?

    Find out about active asset management, passive asset management, how these strategies are utilized and the differences between ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  3. Mutual Funds & ETFs

    Guide To ETF Providers

  4. Mutual Funds & ETFs

    Complete Guide To Investment Companies, Funds And REITs

  5. Trading Systems & Software

    How To Analyze ETFs With Bloomberg

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!