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


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

Related Articles
  1. Insights

    An Introduction to Stock Market Indices

    Investopedia explains the five most talked about indices and what makes them all different.
  2. Investing

    3 Types Of Indexing For ETF Success

    ETF success relies on the index with which it's paired. Discover three index genres for tracking average market performance.
  3. Financial Advisor

    The 4 Best Total Market Index Funds

    Learn about the top four mutual and exchange-traded funds that specialize in investing in broad total market indices of the U.S. equity market.
  4. Investing

    What are Index Funds?

    An index fund is a type of mutual fund that is tied to a broad stock index like the S&P 500 or the Dow Jones Industrial Average, instead of being handpicked and managed by an investment manager. ...
  5. Investing

    The Pros and Cons of Indexes

    Learn about the advantages and disadvantages of stock indexes and passive index funds. Discover how there is an opportunity cost to using index funds.
  6. Financial Advisor

    6 Best California-based Mutual Funds

    Discover six market-leading mutual funds from top asset managers based in California. Learn about mutual fund families that are not household names.
  7. Investing

    The Lowdown On Index Funds

    If you can't beat the market, why not join it? Read on to go over your options.
  8. Financial Advisor

    The 4 Best U.S. Equity Index Mutual Funds

    Find out which four index mutual funds are among the best U.S. equities index mutual funds for core holdings in your investment portfolio.
  9. Investing

    What is an Index?

    An index is a statistical means of calculating a change in an economy or market.
  10. Investing

    3 Expensive Penny Stock ETFs Worth Your While (PZI, IWC)

    Learn how penny stock investors can utilize exchange-traded funds (ETFs) to obtain diversification and lower overall portfolio risk.
Trading Center