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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How can an index fund experience price variations different than those of the index it tracks?
From 22/03/2022 to 24/03/2023, these are the S&P total market index and the Vanguard U.S. Equity Index Fund:
S&P total market index:
Price on 24/03/2022: $4619.20
Price on 24/03/2023: $3974....
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Calculate PE ratio of equally weighted index
I need to calculate Price-to-Earnings Ratio (PE Ratio) of an Equal-weighted index.
Sum of market caps
P/E for Market-cap Weighted index = -------------------
...
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How options affect the index?
I am not able to get technical/logical reason behind following scenario. Can you please help me to explain the reason behind it?
Context:
Group of stocks makes the index. It means Index is dependent ...
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Applying DCF on finding intrinsic value of Nifty50 index or any kind of stock index
Instead of applying DCF on stock price, I wish to apply the technique in order to find intrinsic value of a index since it resembles the behavior of the overall market. But, I'm very consumed what ...
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Calculate Dividends Return from Total & Price returns
I understand Price returns and Total returns for stock indices. For example, total returns account for Dividends paid by the underlying stocks assuming they are reinvested back into the same. How do ...
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Discrepancy between ETFs performance and benchmark index
I am interested in MSCI World Index and was comparing several ETFs. I can understand that performance of ETF itself can be slightly different but how is possible that there is difference in benchmark ...
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I got the tip to invest in CSSPX. When I search the symbol at Stocks.app (Yahoo Finance) there are 3 hits. What exactly is the difference?
I got the tip to invest in CSSPX and ACWX. But unfortunately the symbols are not unique, there are several hits in Stocks.app (Yahoo Finance API). What exactly are the differences in the various hits?
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How are SPX index option prices determined in the 15-minute period after the close?
There are SPX index options that expire every single day now (Mondays, Tuesdays, Wednesdays, Thursdays, and Fridays). I know that SPX options will trade until 4:00pm ET on the day of expiration. ...
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How is the average return rate of the S&P 500 annual return calculated?
I am trying to understand where the famous average return rate of about 10% of the S&P 500 comes from. In most conversations, the usual starting date is on 1965. Its averaging closing value at ...
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Why do financial news focus on price return indexes instead of total return indexes?
On television, in newspapers, and in online financial news portals, price return indexes get featured prominently. News reports regularly mention how much a particular index has risen or fallen over ...
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How do you read a Total Returns chart?
I know that I'm asking a stupid question, but I must admit that I'm lost. I've recently discovered a N225TR - i.e. the Nikkei 225 Total Return - graph and I just can't read it. I know that the y-axis ...
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International and overall stock market chart (on Yahoo Finance) [closed]
When I search the web for overall stock market chart I get Dow Jones U.S. Total Stock Market Index, which is US only. I search a global overall stock market chart (China and all other regions included)...
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Does the MSCI China index include A-shares or not?
I am building a global ETF portfolio, and want to include some chinese equity in it. Therefore, I am looking for ETF's with a broad spread to reflect the chinese stock market. After reading This web-...
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Pricing of options on a non-total return market index
I'm looking at ITM call options for the ESTX50 price(not total return) index. I notice that they gradually become cheaper for the same strike price, the further the expiration date is.
The prices per ...
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S&P 500 constituent holdings not proportional to market cap?
The S&P 500 is a float-adjusted market cap weighted index. As of July 16 2021, the 2 top holdings are AAPL at 6.27% and MSFT at 5.78%, a ratio of 1.09. However the ratio of their market cap is ...
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Is the S&P 500 really the best index/vehicle for long-term investing?
Nearly every source I've read or heard has said that for long-term investing, the best option is to invest in an ETF based on the S&P 500 Index. The logic is that, over the course of many decades, ...
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When trading indices, what are we buying?
When trading indices (like s&p 500, nasdaq 100...etc), Are we buying share/fraction of shares of every stock in it (like ETFs)? or we are just betting that the number(value) of this index (for ...
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Index or fund that closely tracks residential properties in the UK
Rather than buying property in the UK, are there indices or funds that closely follow house price growth/loss in the UK? Property developers tend to have their own growth patterns.
My problem is I won'...
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What is Wholesale Price Index and why is it so important?
Why is wholesale price index so important for us? How does it impact and what role does supply chain have to do with it?
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EURO equivalent of DXY?
The U.S. Dollar Index, sometimes informally referred to as the "Dixie" (https://en.wikipedia.org/wiki/U.S._Dollar_Index) is a nice index value to see the strength of the dollar. I was ...
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Can fundamental analysis be applied to market indexes as if they were single stocks/bonds?
According to Benjamin Graham, in order to avoid speculation, fundamental analysis must be applied in order to analyse the viability of a stock/bond before purchasing it.
Is this criteria valid for a ...
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Is investing in index futures better than investing in index funds? [duplicate]
Given that futures price is equal to S*e^(rt), it is possible to create a synthetic investment into an index by:
entering into an index future for the amount of money which are planned to be invested ...
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What does GTR mean?
I am quite new to the index tracking game, but recently I have seen funds with GTR in the title, for example: "Acquirer’s GTR Index"
After searching for sometime online, I came across "...
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Generally, Stocks move the index. Can index also move the stock?
When the stock’s move they move the index. Can index move the stocks
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Is S&P 500 a capped index, and is it a Total Return or a Price Return index?
Is the S&P 500 index (SPX) often mentioned in business news a capped or non-capped index? I mean, is the weight of a single company, or a single sector capped by a maximum percentage?
And, is it a ...
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How to Calculate S&P Monthly Average Closing Price?
When I look at monthly S&P 500 prices at a site such as Multpl, they state "all prices are monthly average closing prices." e.g. https://www.multpl.com/s-p-500-historical-prices/table/...
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How can I know if a market index includes dividends yield when calculating its value? (with examples)
I'm trying to find out if some indexes are calculated including dividends (specifically, S&P 500, FTSE 100, DAX 30 and IBEX 35).
I have read here that S&P 500 does include dividends. That ...
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Why has China's stock market not performed well when compared to China's economic growth? [closed]
It looks like China's GDP quintupled in the past 30 years, and it's current economic growth is twice that of the US at the moment.. But when looking at a chart of the SSE Composite Index its growth in ...
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Is it logical to invest in American stocks while earning in Euros?
So let's say I want to invest in S&P 500 for five years from now. Will it be a logical investment if I am earning in Euros?
Her's why I am in a dilemma. If I invest into S&P today, then I am ...
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Why can't we arbitrage ETFs?
I invest in a couple of ETFs in Europe and regularly I observe results such as:
VUSA (Vanguard's European S&P500 ETF) went up 0.41% today;
the S&P500 went down 0.68%;
the EUR/DOL went down 0....
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What factors go into UBS’s Global Real Estate Bubble Index (GREBI)?
UBS publishes an annual Global Real Estate Bubble Index, which categorizes real estate prices in various cities as either “undervalued”, “fair valued”, “overvalued” or “bubble risk”.
I am currently ...
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Why did the Baltic Dry Index rise by 65% (YTD)? [closed]
The global economy is (almost) stopped and the price of crude oil is very low, so why did the Baltic Dry Index — an index that shows the cost per unit time of transportation in principal routes around ...
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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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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 ETFs work. 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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