A:

There are a few ways to find out what stock indexes a company is included in and investors should take note of them when they are building their portfolios.

Knowing what indexes a company's stock is a part of can be very important part of predicting future movement. News that affects markets and sectors as a whole, will often move all the stocks within the index, regardless of whether or not the news was directly about the company.

There are several ETFs and mutual funds that are designed to track the major indexes, such as the the SPDR Dow Jones Industrial Average ETF (DIA) which tracks the Dow, and the PowerShares QQQ ETF (QQQ) which tracks the Nasdaq 100.

Determining the Index Components

Many websites provide information on what indexes a company may be a component of, however one of the easiest to use may be at Yahoo Finance.

  1. First, head to the Yahoo Finance quote page.
  2. Next, you can either type in the name or symbol of an index into the quote box (example: Dow Jones Industrial Average) or click one of the shortcut links in the markets bar.
  3. Once you are viewing the summary page of the selected index, click the link to "Components" where you will see the various stocks that are included in the particular index you are researching.

(Source: Yahoo Finance)

Another resource to use when looking for complete lists of index components is the web sites of the index maker. For example, you can find the list of stocks in the Nasdaq 100, by going to Nasdaq.com.

(Source: Nasdaq.com)

(Get to know the most important market indexes in Index Investing.)

RELATED FAQS
  1. How do indexes determine which stocks are removed or added to them?

    Stock indexes are formed based on the kinds of stocks or financial securities they want to track. For example, the Standard ... Read Answer >>
  2. When can you trade the stocks in the Dow Jones Industrial Average (DJIA)?

    Find out when you can trade shares linked to the Dow Jones Industrial Average during NYSE and Nasdaq trading sessions. Read Answer >>
  3. Who or what is Dow Jones?

    Dow Jones is one of the largest financial news companies in the world. It owns the Dow Jones Industrial Average and other ... Read Answer >>
  4. Which benchmarks / indexes track the automotive sector?

    Explore some of the major benchmark equity indexes worldwide that analysts and investors use to track the performance of ... Read Answer >>
Related Articles
  1. Investing

    5 Things You Need To Know About Index Funds

    Index funds, at their best, offer a low-cost way for investors to track popular stock and bond market indexes. But not all index funds are created equally.
  2. Trading

    Using index futures to predict the future

    Want to know whether the stock market will open up or down? Learn about index futures and how they can help predict how the market will trade.
  3. Investing

    ETF Tracking Errors: Protect Your Returns

    Tracking errors tend to be small, but they can still adversely affect your returns. Learn how to protect against them.
  4. Trading

    Index Options: A How-To Guide

    Index options, financial derivatives that derive their value from a stock index, can provide stability and peace of mind for less risky investors.
  5. Financial Advisor

    How to Use Yahoo! Finance

    Yahoo! Finance provides an extremely competent and comprehensive offering for the everyday investor wanting to track a portfolio or stay abreast of news.
  6. Investing

    3 Index Funds with the Lowest Expense Ratios

    Read detailed information about index mutual funds with some of the lowest expense ratios in their categories, and learn about their pros and cons.
  7. Investing

    5 reasons to avoid index funds

    As index funds are more prevalent and accessible in today's financial market, investors need to be aware of the downside of investing in index funds. Learn these 5 potential downsides in index ...
  8. Investing

    ETF Bubble or No Bubble?

    Index funds are taking an ever larger piece of the ETF pie, and this raises liquidity concerns for investors.
RELATED TERMS
  1. Indexing

    In the financial markets, indexing can be used as a statistical ...
  2. Composite

    A composite is a grouping of equities, indexes or other factors ...
  3. Index Futures

    Index futures are contracts based on a financial index, which ...
  4. Index Investing

    Index investing is a passive strategy that attempts to track ...
  5. Dow Jones Asian Titans 50 Index

    Dow Jones Asian Titans 50 Index is a market capitalization-weighted ...
  6. Index Fund

    An index fund is a portfolio of stocks or bonds that is designed ...
Trading Center