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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Do people who buy and hold individual stocks for longer than 10+ years have a much better chance of outperforming the market?

edit: I really wanted to ask "do people who buy and hold individual stocks for longer than 10+ years have a much better chance of outperforming the market, such that this is actually a better ...
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Where can we see Futures Volume?

Does anyone know where I can see Futures volumes? None of the boards show it.
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How to find world market index symbols in different brokers (i.e. TOS, RH)

I use Thinkorswim to check on the E-Mini S&P 500 futures, 'ES20', but I also want to see the FTSE 100, CAC 40, AEX, Hang Seng, etc. But when I enter those names to the search field I get no ...
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Why do the paid prices for an accumulating ETF share follow the current net asset value per share?

It is pretty clear; if you hold a share of a distributing ETF, which is replicating a stock market index like S&P 500 for example, then you can count on regular dividends paid by the the ...
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ETF of 2000 or more stocks but excludes stocks from the S&P 500?

I believe the S&P 500 is overvalued and small-cap stocks are less overvalued. So I would like to buy market index (like 2000 or 5000 companies) but without the S&P 500 companies. Are there ...
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Does the Dow Jones Industrial Average (DJIA) always have 30 constituent companies?

I know that the Dow Jones Industrial Average (DJIA) started with 12 industrial companies in 1896, but that's not what I'm asking about here. I'm asking about its contemporary version. The S&P 500 ...
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How do the VIX options work behind the scenes?

I cannot wrap my head around how do the VIX options work. For example SPY, simple and easy, there is a basket of stocks, and when you buy one share of SPY you own a little piece of every of 500 blue ...
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Are the S&P 500 and DOW “performance index” or normal/price index?

I've just learned that (apparently) the term "performance-based index" or "performance index" is used to describe an index that sort of includes dividends. So (based on this web ...
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Lifecycle Investing through index options

I'm a young DIY investor who is looking for ways to consistently implement the approach outlined in the Lifecycle Investing book by Barry Nalebuff and Ian Ayres. In short, they suggest using moderate ...
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25 views

Can any index be converted to a respective trading instrument using F&O contracts?

Pardon me if this sounds silly, I am not a finance student but it seems to me that any index can be used as a trading instrument with proper regulations. For example much like forex, with currency ...
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How is a new index fund created?

When a new index fund is created, how does it go from a concept to product? Where does the money come from to buy the initial investments that are needed for the fund to have its advertised ...
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How exactly does MSCI earn money?

When I buy an ETF like the "iShares MSCI World", as I understand I buy a share from a fund that is managed by BlackRock (under the name of iShares). I can also buy an edition of the MSCI ...
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Why is the NASDAQ out performing the S&P 500?

I have been checking out the performance of both the NASDAQ and the S&P 500, but was unable to understand / google why. Especially in the 2nd quarter of 2020, NASDAQ is doing way better, although ...
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How can I find the asset allocation of the FTSE All-World Index?

I am trying to find the asset allocation of Vanguard's FTSE All-World ETF. Even though Vanguard's documents preciselly state ETFs holdings in percentage, I have not found the asset allocation in terms ...
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Understanding how an ETF works

I am trying to fully understand how an ETF works. For the sake of simplicity, let us restrict ourselves to physical replica ETFs. Let us suppose that an ETF follows an index which tracks three stocks:...
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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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67 views

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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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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Convert S&P 500 Market Cap and Dividend Yield to Total Return

I have S&P 500 Dividend Yield data. I want to build graph that would show how much money — including dividends — I would get if I hold 1 "unit" of S&P 500 over time. So the dividends ...
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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, the ...
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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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370 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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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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275 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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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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391 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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287 views

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 ...