Questions tagged [market-indexes]

This is a metric for tracking a collection of securities. For example, among US stocks, a commonly referenced index is the S&P 500. An index may be price-weighted, market-capitalization weighted or some other way to determine how much of the index each security contributes.

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154 views

Why will SPY terminate in 2118?

Today, I discovered that the SPDR S&P 500 ETF Trust (NYSE: SPY) is structured differently from most other ETFs; it appears to be structured as a Unit Investment Trust (UIT). I know that UITs have ...
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Can I convert shares in an index ETF into shares of the index constituents?

Suppose I own many shares of the SPDR Dow Jones Industrial Average ETF Trust (NYSE Arca: DIA). How can I convert those shares in DIA into shares of the 30 components of the DJIA?
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What do index ETFs do when an index constituent has a rights issue?

For index-tracking ETFs, what happens when one of the index constituents has a rights issue? Do the ETFs subscribe to the rights issue, do they ignore the rights, or do they sell the rights? If they ...
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Is there any reason to buy an ETF based on an index which has been historically flat?

This year I started studying a bit of finance to understand better personal investments. One of the most popular general advice for US based investors is to just buy and hold a low cost ETF fund based ...
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Why does the market graph on Yahoo Finance move all the time

When I go to Yahoo Finance, I see that the market is moving all the time. On the top of the web page, I see S&P, Dow, and Nasdaq. Their graphs keep on moving even at midnight. I thought the market ...
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Will Bloomberg Composite Crude Oil Subindex rise when Crude oil prices rise?

Since the oil prices have plunged recently, I want to capitalize on this opportunity by investing in WisdomTree WTI Crude Oil ETC which tracks Bloomberg Composite Crude Oil Subindex. Question: 1) ...
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How to compare return of an ETF with the index it tracks in Morningstar?

In Morning start you can compare stock indices and ETFs, but I haven't found a way to compare an ETF/Index fund with the index it tracks, in order to see how accurate is the ETF/Index fund is. How ...
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How Index Funds Raise Money to buy new stocks?

In general, after IPO, the transactions happening on the shares will be between buyer and seller and they won't go to the Organization. And after that companies rely on their earnings, debts and ...
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73 views

Simple investing strategy for the EU

I have read in some books that a good investment strategy must be simple. Let's assume that this is true. In the case of USA, a simple strategy would be to invest in the S&P 500 or the Wilshire ...
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How is the change in the DJIA (Dow Jones Industrial Average) calculated?

For example, today (April 1st, 2020) the DJIA: Open 21,227.38 Low 20,784.43 High 21,487.24 Close 20,943.51 Change reported as: −973.65 (-4.44%)
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Why does the Nikkei 225 appear to be such a bad long-term investment?

For most well-developed countries, indexes of their stock markets tend to grow in the very long term. For example, look up a long-term graph of the FTSE100 or the S&P500. For Japan's Nikkei 225, ...
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Why are some ETFs a tenth of the index's value? [duplicate]

At the time of posting this question, the S&P 500 index stands at $2,304.92. As per Investopedia, the largest ETF that tracks the S&P 500 is State Street Global Advisors' SPDR S&P 500 ETF ...
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Why doesn't Russell 3000 contain exactly 3000 securities? [duplicate]

FTSE says Russell 3000 measures the performance of the largest 3,000 US companies representing approximately 98% of the investable US equity market. However, according to here, as of May 2019, ...
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73 views

Why did the VIX trade for so much around Q4 2011?

It looks like the TVIX in 2011 was trading at some unimaginable prices. $2B USD? Marketwatch has these same numbers. Were these numbers real? How? This seems like an amazing bit of trivia from ...
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What is the mechanism behind stocks correlation?

Stocks are VERY correlated. This is obvious when looking at an index: most stocks chart match peaks and valleys. What I would like to know is the mechanism behind those correlations? Is it "buy ...
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How safe it is in the long run to regularly invest in the stock market?

I keep seeing the advice of "do not time the market and invest regularly you will eventually be winning over time". This advice is often illustrated by a graph of different index funds and show that ...
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163 views

What exactly does an ETF do when a company is added or removed from an index?

Suppose an index is changed in so far as Company A is removed and Company B is added. Are these changes reflected immediately in an ETF reflecting said index? I suppose that when an AP creates ETF "...
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Calculating volume-weighted-average spread (VWAS) for an index at a given size

I need to produce the effective spread at size 5K of an index. I am able to get all the securities' individual effective spread, but a simple averaging of all the effective spread of those securities ...
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Trying to understand diversification in market indexes

I have read an article in morningstar telling that Euro Stoxx 50 provides a good degree of diversification. This surprises me, my understanding is that the S&P 500 is well diversified, how can an ...
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Currency risk with a good index, or bad index with no currency risk

I understand that usually is not a good idea to allocate the majority of your assets in international investments due to currency risk. Still, when I look at the Euro Stoxx 50 it seems that it's far ...
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1answer
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ETP/ETF to get exposure to Commodities (EU Based) [closed]

I am looking to invest in an ETP to get exposure on Commodities market. In order to do this I am looking for an Index with following requirements: Broad diversification across commodities (...
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144 views

What are the worlds oldest market indexes?

I recently noticed that the S&P500 index has recorded daily price entries for over 90 years: https://finance.yahoo.com/quote/%5EGSPC?p=%5EGSPC the first recorded day being the 1st December ...
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S&P index correction

Someone told me that the S&P index will get a "correction" downward. What does it mean exactly? What are the chances it will actually happen, and if it does, can we somehow know when it will ...
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S&P divisor and new stock issued

I am trying to calculate net dollar amount of stock issued / buyback, with change in divisor. I am assuming that the divisor only changes with change in stocks as it is market capital weighted index. ...
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81 views

Why does my portfolio trend in the opposite direction from the Nifty Index?

I have a set of stocks in my portfolio (some are part of Nifty Index, mix of large/mid/small cap), but I observed that most of the times when the Index surges, my portfolio drops on that particular ...
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LIBOR Reform creates Winners and Losers

One phrase I heard of the reform to move away from LIBOR is that it would create winners and losers. Can someone explain how this might happen?
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Fractional-Cent Dividends & Official Sources

How do fractional cent dividends work? In ETFs such as SPY, which represents a group of stocks, the dividends come from pooling the underlying dividends and comes to a long decimal (such as $1.383619 ...
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385 views

How can you know which index is tracked by a specific index fund?

Looking at this Vanguard UK index fund (short-term investment grade bonds). It says: The Fund seeks to provide returns consistent with the performance of the index,[...] How can I know which ...
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Why is there more attention on the S&P 500 than on the S&P 500, inflation adjusted, with dividends?

Dividends, like increased stock price, are just another equivalent way for shareholders to gain value (with some tax differences). Many investors reinvest the dividends and so never "see" them. Of ...
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How does a capped gain / capped loss product compare to a pure index investment?

I'm looking at investment products offered by several banks in my area. Many of them follow the basic idea of capped risk/gain: the earnings and the losses are proportional to a certain index, but ...
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Understanding the past growth of an ETF

I'm trying to understand the grow of an ETF (Vanguard VOO) over the past year. I have checked both the Vanguard web page and Google, for the same ETF, and they show massive different growths. In ...
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Indexes from USA and EU for small investors

Is there any special consideration one must have when comparing indexes from different countries/ zones (e.g. S&P 500 vs SX5E) apart from their respective growths over a period of time? Is there ...
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How to compare different stock indexes?

I'm trying to understand how to measure the growth of a particular stock index over a certain period of time, e.g. 5 years. As far as I understand, for calculating the total growth, you need to do ((...
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Is the profitability of investing in indexed funds properly reflected by the change of value in the index?

I'm reading this article, which makes the following claim: In 1974 the Dow closed at 616*. At the end of 2014 it was 17,823*. Over that 40 year period (January 1975 – January 2015) the S&P 500 (...
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How much are index providers accountable to their clients?

Criticism on index providers: The increasing influence of indices means that some critics argue that benchmark providers such as MSCI are too powerful, given that promotions or relegations can ...
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S&P 500 Index Value

What does the 2886.98 value mean as it relates to the S&P 500 index?
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Are there any mostly-passive funds that become active after stock market crashes?

I am thinking of the following scenario: Expansion, index with low fees After a market crash, lever up and buys equities Does there exist a fund which follows this strategy? Preferably an ETF?
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Why Indices last update time extends market hours?

For example currently during market close DJIA index has last update time of '5:04 PM EDT'. As we know DJIA is made up of 30 major stocks that trade on NYSE & NASDAQ. I wonder all these stocks ...
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284 views

Building an index tracking portfolio

I want to track an index for my savings, but I wasn't able to find in my country (Argentina, if it matters) an Index Fund that's cheap, has a low tracking error and that I can expect won't be ...
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165 views

Cash Component in Index

In one of the office discussions today, it came up that index, for example, can have cash also. This information was new to me and I couldn't understand why an Index will have cash? Could someone ...
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What were quarterly values of the MSCI “WMA Private Investor Income Index” (TR) for the last 5-6 years?

In the UK, the WMA indices are quite popular with "wealth management" types for benchmarking performance of clients' multi-asset portfolios. I'm interested in finding the historic values of the WMA ...
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Bloomberg Ticker from Index ISIN and Index Key

Is there a way to find the Bloomberg Ticker for an Index given the Index ISIN and Index Key?
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How exactly does a broad-market ETF work?

So it's obvious that a broad-market ETF attempts to imitate the performance of the whole stock market, but what I still don't understand is how it works and exactly what you are investing in when you ...
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173 views

What is the meaning of ^ symbol for SPX

I've seen symbols SPX and ^SPX, is there any significance for the symbol "^"?
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How are ETF prices calculated after the market is closed

For example: Because the NASDAQ: DAX is tracking the index INDEXDB: DAX should its trading value be completely flat when the market the markets are open in the US, but closed in Germany? I'm not ...
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What are some strategies for profitable buying of naked options (call / put)?

I prefer naked options of the index and stocks for obvious reasons. I would like to know some strategies to remain profitable with it. Note: I choose first out the money (strike price) option ...
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497 views

Can I profit on Brexit having a modest amount of Pound Sterling?

Knowing the Brexit is coming, is there any way I can profit on that? I'm willing to speculate a small amount of money just for fun, but if there was a less risky way of profiting on Brexit, I'm ...
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Where can one download monthly index fund prices from the deep past (40+ years) until today? [closed]

In the Four Pillars of Investing (2002), p. 119, William Bernstein suggests that a portfolio divided 50/50 into the SP500 and EAFE indexes (respectively US domestic and foreign stocks) and rebalanced ...
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What happens when a stock drops out of the bottom of an index?

Many indexes around the world are the top X stocks on an exchange. What happens when the bottom stock is overtaken by a stock that isn't in the index? Presumably, all of the funds that track that ...
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net return versus gross return

I understand what those terms mean, however I am puzzled by why they are so different in value, for example: EURO STOXX 50, the net return is quoted at: 6979.38, while the gross return version is ...