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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44
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10answers
12k views

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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Why don't SPY, SPX, and the e-mini s&p 500 track perfectly with each other?

These tickers (SPY, SPX, /ES) are all based off the S&P 500 yet the relative lows and highs diverge. Can someone provide a basic explanation what causes this to happen? I feel like it may stem ...
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2answers
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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 big companies like Apple or Google not included in the Dow Jones Industrial Average (DJIA) index?

I'm taking an investing and personal finance class in school. I was assigned to ask someone who knows about the stock market why big companies like Apple and Google aren't included the Dow Jones ...
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Does it make sense to buy an index ETF (e.g. S&P 500) when the index is at an all-time high?

I have some money I intend to invest over the next 3-4 years. An important chunk of my portfolio would be invested in a stock market index ETF such as one representing the S&P 500. Unfortunately, ...
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1answer
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Why does VOO pay less dividends than SPY?

I understand that the ETFs SPY and VOO were created at different times and that their payout dates are different and due to that, it is possible that the dividends may vary a little bit. In my logic ...
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Are there index tracking funds that avoid the “buy high - sell low” problem?

An index tracking fund is a fund that buys direct stocks with a view to directly matching a particular index (e.g. the S&P500 or Russell 2000). One way to allocate assets in such a fund is to ...
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Which US market indexes (Dow/DJIA, S&P500, NASDAQ) include reinvested dividends?

Which major US market indexes (Dow/DJIA, S&P 500, NASDAQ) include returns from reinvested dividends, and which don't? Where can "total return" information be found for each index that doesn't ...
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Understanding differences between S&P500 index-tracking ETFs [duplicate]

I'm trying to understand the difference between S&P 500 trackers. Example: SPY IVV VOO They all have different prices (IVV being $1 more, on average than SPY, and VOO being about 50% of ...
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1answer
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API for retrieving index P/E ratio?

Or CAPE ratio? I would love to be able to pull the current P/E ratio for the S&P 500 into a spreadsheet, for example. Neither the Google or Yahoo APIs have a P/E ratio associated with indices. ...
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1answer
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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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Is there a widely recognized bond index?

S&P 500 is a widely recognized stock index, that many people benchmark performance against, and you can find 'passive management' funds that compete to replicate it at as low a fee as possible. ...
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1answer
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Where can you find historical PEs of US indices?

Indices tracking ETFs * DIAMONDS Trust I (ticker: DIA) tracks DJIA * SPDRs (ticker: SPY) tracks S&P 500 * NASDAQ 100 Trust (ticker: QQQQ) tracks NASDAQ 100 * iShares Russell 2000 (ticker: IWM) ...
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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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What are the top “market conditions” to follow?

In the investment world, people are constantly advising me to consider "market conditions". I'm investing mainly in mutual funds with a diverse asset allocation (bonds and stocks spread across market ...
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1answer
224 views

World Indexes - Variance between representation of a country's stocks and the country's proportion of world GDP

As an example, over 50% of stocks listed in the FTSE All-World Index are USA based. (see bottom of page 3 in the index's fact sheet) or see image below. However, the USA only comprises of around 25% ...
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1answer
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What happened to the Google Price Index?

I've seen it before, but I can't find it anymore. I think I remember Google mentioning that it would only be available in graphical form, but not data form, and also that it would only show one year, ...
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What is the easiest way to back-test index funds and ETFs?

Some authors are irritating such as Stein, more here, they keep throwing people all kind of new "investing" strategies and different ideas after their last ideas stopped working. I feel such authors ...
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1answer
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How does the futures market affect the stock market?

For instance, at this current moment the SP500 index is at 2094 while the futures on this market, symbol /ES with a contract of June is at 2088. Can someone please explain how traders and investors ...
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What marks the beginning of a bear market?

I continue to hear that our "aging bull market" continues to plod along, but the indices are falling relative to their high point in late January. What is the metric by which one determines the ...
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1answer
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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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2answers
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How are Vanguard's ETF's returns higher than the index's growth?

I tried comparing Vanguard's ETF returns to the index the ETF is tracking and it looks like their ETF highly outperformed the index? The S&P/ASX 300 index only grew less than 29% total in 5 years,...
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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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S&P 500 - Current Constituent List

I'm getting different constituents from various places. An Excel sheet from the S&P website indicates 498 constituents in the S&P 500: Link to Excel Sheet on the S&P website, look at the "...
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2answers
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Analysis of Valuation-Informed Indexing?

My question. I've been reading about Valuation-Informed Indexing (VII). What is your reaction? Would you recommend this strategy? What are its potential strengths/weaknesses? Background. For those ...
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Does it make sense to talk about an ETF or index in terms of technical indicators?

For example, a story today talked about SPY approaching support levels. Given that the price of the ETF is essentially determined by the price of its constituents, does this even make sense? Do ...
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2answers
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What are the companies in the FTSE4Good UK 50?

I've been looking for a definitive and up-to-date (and reasonably regularly updated) source listing the companies included in the FTSE4Good UK 50 index (preferably by their LSE ticker code). This has ...
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1answer
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Historic variation in FTSE100 total market capitalization as a proportion of the FTSEAllShare total market cap?

Many years ago (in ~2000, give or take a year?) I remember seeing some discussions on The Motley Fool UK's forums about how much more diversification investing in an FTSE-AllShare tracker instead of ...
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How come the Russell 2000 has only 1974 stocks in the newly updated list?

Why is the Russell 2000 comprised of only 1974 stocks? I counted the total number of stocks as 1974 from their June 2013 list. The fact sheet says that the Russell 2000 "includes approximately ...
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1answer
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What is the “point” (purpose) of the S&P 500?

I've long wondered about the philosophy behind the selection of stocks in the S&P 500. I've assumed that it was intended as a market indicator, with the selection being those that best paralleled ...
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1answer
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How frequently is the list of constituents that make up the S&P/ASX 300 updated?

How frequently is the list of constituents that make up the S&P/ASX 300 updated? Is it once a month on the 1st Monday of the month, or daily, etc?
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Who determines, and how, the composition of the S&P 500 index?

I thought S&P 500 would contain the top 500 U.S. companies by market cap, but apparently that is not the case? e.g., Facebook (FB) was only recently added and has market cap of $100B whereas ...
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2answers
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How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends?

The DJIA is a price-weighted index tracking of 30 companies chosen by the Dow Jones Company. It takes the current share price of these 30 stocks and divides by a specific number called the divisor. ...
4
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2answers
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How has the country exposure of the FTSE All-World High Dividend Yield Index and the FTSE All-World Index changed with time?

I’m interested in how the country exposure of the FTSE All-World High Dividend Yield Index and the FTSE All-World Index have changed over time (if it has much at all). The index factsheets page here ...
4
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2answers
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Can the shorting of S&P futures negatively affect the underlying index and constituent stocks?

I hear people on financial shows talk all the time about index futures like SPY and QQQQ affecting the actual index. Can shorting these futures (in huge quantities obviously) cause the underlying ...
4
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1answer
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What is the meaning of volume for an index?

http://yhoo.it/9K44hN lists the historical price of Dow Jones Industrial index in a table. The 6th column of this table is the volume information. What does the volume listed in this column exactly ...
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643 views

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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1answer
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Where can I find historical ratios of international stock indexes? [closed]

What is the best source for historical ratios (such as p/e, p/s, price/book, dividend yield) of various international stock indexes (e.g. FTSE EPRA/NAREIT Developed Asia or MSCI Singapore)?
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3answers
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How can I find a high-risk, high-reward investment that is not strongly correlated with the U.S. economy?

I'm looking to add something to my investment portfolio for diversification. Right now, I own mostly a U.S. stock index fund, with a little bit of an international stock index fund, bonds and cash ...
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4answers
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Does an index have a currency?

Does an index like the S&P 500 (or any index for that matter) have a currency? For example, does it make sense to say that the S&P 500 closed at $2,132.98? Or would denoting the currency of ...
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1answer
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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 ...
3
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1answer
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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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2answers
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What does it mean when someone says “FTSE closed at xxx today”

When someone says "The FTSE closed at 402 today," what does this actually mean? Is it the company who had the best stock price increase or a sum of all the companies or something else?
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1answer
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Sell covered call on an index option

When I trade an index option (SPX), there is no actual trading going on in the underlying (as opposed to SPY). But some option strategies (like covered call) by definition require a position in the ...
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3answers
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Discussing stock and stock index movement: clarifying percentage vs. points?

I'm trying to understand more about financial terminology used in news reports, but I'm having a hard time understanding what is meant when someone says the following: "NASDAQ was down X points today ...
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1answer
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Where can I find Bitcoin Misery Index?

There has been a lot written about Bitcoin Misery Index: The index is called the Bitcoin Misery Index (BMI) and was designed as a trading tool for investors to take advantage of volatility in BTC ...
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1answer
244 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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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 ...
3
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1answer
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When does an indexing company have to announce its re-balance/reconstitution dates?

Every year indexes like the Russell cause huge volume days when they change the composition of their highly followed indexes. Is there regulation that dictates the timing of when they announce what ...
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1answer
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Historical P/E ratios of small-cap vs. large-cap stocks?

According to the Wall Street Journal Website, average trailing 12-month P/E ratios on the major large-cap indices are currently (late September, 2011) around 12-14, which is slightly cheap compared to ...