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

We've covered most of the big U.S. indexes, but we've barely scratched the surface of the total indexes in the world. There are literally thousands of indexes tracking nearly every asset class, market, sector, industry and geographic region – such as the Americas, Europe, Middle East, Africa and Asia Pacific. S&P Dow Jones Indices, for example, maintains the S&P Europe 350 as well as the S&P Access China. Every major country has an index that represents its own stock exchange. Here are some of the more important indexes around the world: 

  • FTSE 100 – 100 of the largest companies listed on the London Stock Exchange.
  • Hang Seng – 40 of the largest companies listed on the Hong Kong Exchange. 
  • Nikkei – The top 225 blue-chip companies traded on the Tokyo Stock Exchange.
  • Dax – 30 of the largest and most liquid stocks on the Frankfurt Exchange.
  • S&P/TSX Composite – About 250 of the largest companies on the Toronto Stock Exchange.
  • CAC 40 – 40 of the largest French stocks listed on Euronext Paris (formerly Paris Bourse).

Choosing the Correct Benchmark 

Even if you don't invest in them, it’s important to use the correct index when comparing your portfolio’s performance. For example, if you own a mutual fund that invests in emerging markets, it would be useless to compare its performance against an index tracking the semiconductor industry. It’s easy to find an appropriate index by searching the Internet. For example, if you search for “emerging markets index” you’ll find the MSCI Emerging Markets Index, which captures large and mid-cap companies across 24 emerging markets countries.

Index Investing: Index Funds
Related Articles
  1. Investing

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
  2. Investing

    How to Use Index Funds to Diversify Your Portfolio

    Index funds can act as quality diversification tools.
  3. Investing

    S&P 500 Index: A Performance Analysis of Long-Term Returns

    Discover how to gain insight into the returns generated by the S&P 500 Index over the long term and how this can assist your investment goals.
  4. 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.
  5. Investing

    Who Owns The Stock Exchanges?

    As M&A heats up among the exchanges, here's how the market currently looks.
  6. Investing

    Enhanced Index Funds: Can They Deliver Low-Risk Returns?

    These funds may look appealing. Find out whether they can really live up to all of their promises.
  7. Investing

    Retired? Don't Be in Broad-Based Index Funds

    When it comes time to divest, you need to be able to sell high, not low, but broad-based index funds won’t let you do this. There is a solution.
  8. Financial Advisor

    3 Best Global Equity Index Mutual Funds

    Discover three no-load and low-fee global equity index mutual funds that can add worldwide diversification and steady returns to a portfolio.
Frequently Asked Questions
  1. The Difference Between an Operating Expense and Capital Expense

    Learn more about the differences between an operating expense (OPEX) and a capital expense (CAPEX), and see how they are ...
  2. The 9 Major Financial Institutions

    There are nine major types of financial institutions. Understand these major types of financial institutions that exist in ...
  3. What causes a bond's price to rise?

    Should you invest into bonds? Learn about factors that influence the price of a bond, such as interest rate changes, credit ...
  4. Why Do Most of My Mortgage Payments Start Out as Interest?

    The first thing first-time home buyer needs to know is over the life of the mortgage, the portions of interest to principal ...
Trading Center