WHAT IS THE 'Dow Jones Wilshire Mid-Cap Index'

The Dow Jones Wilshire Mid-Cap Index is a type of index maintained by Dow Jones.

BREAKING DOWN 'Dow Jones Wilshire Mid-Cap Index'

The Dow Jones Wilshire Mid-Cap Index is a market-capitalization-weighted index that is part of Dow Jones Indices. The Dow Jones Wilshire Mid-Cap Index contains the companies ranked 501 to 1,000 as measured by market capitalization.

The Dow Jones Wilshire Mid-Cap Index is the mid-cap subset of the Dow Jones Wilshire 5000 Composite Index. The Dow Jones Wilshire 5000 Composite Index, also known as the Dow Jones Wilshire 5000 Total Market Index, is the most broadly based U.S. stock index. Along with the Dow Jones Wilshire Mid-Cap Index, there are three other segments of market capitalization, each with a different index association. The three other segments are the Dow Jones Wilshire U.S. Large-Cap Index, which includes stocks ranked 1 through 750, the Dow Jones Wilshire U.S. Small-Cap Index, with stocks ranked 751-2,500, and the Dow Jones Wilshire U.S. Micro-Cap Index, with the stocks that are ranked 2,501+. The mid-cap index contains stocks from both the small- and large-cap indexes. It contains approximately 250 of the smallest large-cap stocks and 250 of the largest small-cap stocks.

The four indices together are known as the Dow Jones U.S. Total Market Index, sometimes called simply the Dow Jones U.S. Index. The Dow Jones U.S. Total Market Index is a popular tool for investors as it proves a comprehensive broad-based coverage of the US market and includes the majority of stocks except those of the smallest value. The index represents the top 95 percent of the U.S. stock market based on market capitalization and includes around 3,600 stocks traded on U.S. stock exchanges.

Dow Jones and Other Market Indices

The Dow Jones Wilshire Mid-Cap Index as a type of market index is a weighted average of several stocks; it is only one kind of many market indices. Market indices measure the value of groups of stocks. Investors look at a market index to represent the stock market is in its entirety and also to track market changes over time. Calculated from the price of the selected stocks, some of the most well known indices include Dow Jones, the Standard and Poor's 500 Index, and the Nasdaq Composite Index. The Dow Jones U.S. Total Market Index is a particularly useful research tool, and investors use it as a standard to predict investing patterns and as a benchmark or standard with which to compare other stocks.

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