Index Investing: The Wilshire 5000 Total Market 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

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. Dow Jones Wilshire Large-Cap Index

    A market-capitalization weighted index that is the large-cap ...
  2. Dow Jones Wilshire Small-Cap Index

    Former name of the Wilshire US Small-Cap Index, a market-capitalization ...
  3. Dow Jones Wilshire Mid-Cap Index

    A market-capitalization weighted index maintained by Dow Jones ...
  4. Broad-Based Index

    An index designed to reflect the movement of the entire market. ...
  5. Wilshire 5000 Total Market Index - TMWX

    A market capitalization-weighted index composed of more than ...
  6. Total Stock Fund

    A mutual fund or ETF that seeks to replicate the broad market ...
RELATED FAQS
  1. What is the best way to measure the total market?

    There is a variety of market indices which function as statistical gauges of the market's activities. Many investors look ... Read Answer >>
  2. The broadest measure of the activity and movement of the overall stock market can ...

    The correct answer is b). The Wilshire 5000 is a value weighted index that consists of more than 7,000 issues that trade ... Read Answer >>
  3. Is there an index for tracking mid-cap stocks?

    Learn the specifics about indexes available for tracking companies with market capitalizations in the medium-sized, small ... Read Answer >>
  4. What's the difference between an index fund and an ETF?

    Learn about the difference between an index fund and an exchange-traded fund and how index fund investing compares to value ... Read Answer >>
  5. Is it possible to invest in an index?

    First, let's review the definition of an index. An index is essentially an imaginary portfolio of securities representing ... Read Answer >>
  6. Why do index funds tend to have low expense ratios?

    Understand what an index fund is and why the nature of index funds causes them to have lower expense ratios than more actively ... Read Answer >>

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