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
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