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20

Here is, from Yahoo Finance, the S&P 500 over the last ~60 years (logarithmic scale): The behavior since ~2000 has been weird, by historical standards. And it's very easy, looking at that graph, to say "yes! I would have made so much money had I invested in March '09!". Of course, back in March '09, it wasn't so clear that was the bottom. But, yes, ...


19

Do you see how VOO and SPY don't have the same price? Say you and I both start an S&P index ETF. For sake of easy paperwork, and to discourage small customers, you sell shares at a starting value of $10,000. But, I like the little guy and start at $10. Your dividends per share will be 1000 times mine. But, if my customer hold 1000 shares, and you have ...


18

That is a pretty exclusive club and for the most part they are not interested in highly volatile companies like Apple and Google. Sure, IBM is part of the DJIA, but that is about as stalwart as you can get these days. The typical profile for a DJIA stock would be one that pays fairly predictable dividends, has been around since money was invented, and are ...


15

The currently accepted answer is incorrect. Vanguard is quoting the 1-year return as of 9/30/2019. This is calculated from the close of 9/28/2018 (the last trading day of September 2018) to the close of 9/30/2019. It is important to get the exact dates right because stock indices can easily rise or fall 1% or more in a day. Stock price fluctuations are ...


13

Traditionally, the Dow Jones Industrial Average (DJIA) was only comprised of stocks that were traded on the New York Stock exchange. Neither Apple (AAPL) nor Google (GOOG) are traded on the New York Stock Exchange but instead are traded on NASDAQ. All NASDAQ tickers are four characters long and all NYSE tickers are only three or less characters long (e.g. ...


13

"In other words, to a first-order approximation, the S&P 500 is always at an all-time high." I'm going to run with this observation a bit. The crash of '87 was remarkable. It was a drop of 1/3 in a short time, yet, when one looked at the year, the Dow was up nearly 5% with dividends included. A one-year Rip Van Winkler would have woken up thinking it an ...


13

As Ross says, SPX is the index itself. This carries no overheads. It is defined as a capitalization-weighted mixture of the stocks of (about) 500 companies. SPY is an index fund that tries to match the performance of SPX. As an index fund it has several differences from the index: It is NOT the index in that it cannot acquire 100% of the share capital of ...


13

You can’t determine the beginning of a bear market at the time — if you could then it would immediately become a crash, as everyone would try to sell. It can only be determined retroactively, after the fact.


12

The S&P 500 index is a float-adjusted market-cap weighted index. It’s calculated by taking the sum of the adjusted market capitalization of all S&P 500 stocks and then dividing it with an index divisor (8332.84 as of 3/31/19), which is a proprietary figure developed by Standard & Poor's. The Investopedia article What Does the S&P 500 Index ...


10

FTSE is an index catering to the London stock exchange. It is a Capitalization-Weighted Index of 100 companies listed on the London Stock Exchange with the highest market capitalization . When somebody says FTSE closed at 6440, it basically means at the end of the day, the index calculated using the day end market capitalization of the companies, included ...


10

Have you actually read the Wikipedia article? To calculate the DJIA, the sum of the prices of all 30 stocks is divided by a divisor, the Dow Divisor. The divisor is adjusted in case of stock splits, spinoffs or similar structural changes, to ensure that such events do not in themselves alter the numerical value of the DJIA. Early on, the initial divisor ...


10

Repost of comment as an answer (as per Chirlu's suggestion). The index does not take into account the dividends paid by the stocks in the index; the ETF does. So the ETF's return outperforms the return of the index.


10

From Investopedia: Although figures vary, a downturn of 20% or more from a peak in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over a two-month period is considered an entry into a bear market.


9

In addition to the answers provided above, the weight the Dow uses to determine the index is not the market capitalization of the company involved. That means that companies like Google and Apple with very high share prices and no particular inclination to split could adversely effect the Dow, turning it into essentially the "Apple and Google and then some ...


9

Stock market indexes are generally based on market capitalization, which is not the same as GDP. GDP includes the value of all goods and services produced in a country; this includes a large amount of small-scale production which may not be reflected in stock market capitalizations. Thus the ratio between countries' GDPs may not be the same as the ratio of ...


9

Google's numbers: 10/01/18 $268.04 09/27/19 $271.26 That's a gain of 1.20% which is far less than the actual return because Google did not account for dividends. During that period you would have received $5.43 in dividends so the Total Return with dividends reinvested would have been 3.34%. You can verify these numbers with a DRIP calculator or with ...


8

From Wikipedia - To calculate the value of the S&P 500 Index, the sum of the adjusted market capitalization of all 500 stocks is divided by a factor, usually referred to as the Divisor. For example, if the total adjusted market cap of the 500 component stocks is US$13 trillion and the Divisor is set at 8.933 billion, then the S&P 500 ...


7

I emailed Dr. Varian, the chief economist at Google (formerly a Berkeley economist) to ask; he responded that the GPI was never intended to be a public project, data source, etc. It was simply a project internal to Google that got hyped up by the press. In my opinion (unconfirmed by Dr. Varian) Google, like virtually every other company, probably uses the ...


7

The S&P 500 is an index. This refers to a specific collection of securities which is held in perfect proportion. The dollar value of an index is scaled arbitrarily and is based off of an arbitrary starting price. (Side note: this is why an index never has a "split"). Assumptions Lets look at what assumptions are included in the pricing of an index: ...


6

Multiple overlapping indices exist covering various investment universes. Almost all of the widely followed indices were originally created by Lehman Brothers and are now maintained by Barclays. The broadest U.S. dollar based bond index is known as the Universal. The Aggregate (often abbreviated Agg), which is historically the most popular index, more or ...


6

The S&P/ASX 300 is rebalanced every six months, with changes taking effect on the third Friday of March and September. From a PDF under Methodology


5

The methodology for divisor changes is based on splits and composition changes. Dividends are ignored by the index. Side note - this is why, in my opinion, that any discussion of the Dow's change over a long term becomes meaningless. Ignoring even a 2% per year dividend has a significant impact over many decades. The divisor can be found at http://wsj.com/...


5

This should be what you seek. Yahoo Euro vs S&P the link shows:


5

I don't know of any free APIs (which I assume you are looking for) that do the pre-calculation of that for you. In Robert Shiller's book Irrational Exuberence he referenced data available on his website (here: http://www.econ.yale.edu/~shiller/data.htm), but it is not comprehensive or up to date. You could however, using any APIs for individual stocks, ...


5

Based on their published methodology After the initial market capitalization breakpoints are determined by the ranges listed above, new members are assigned on the basis of the breakpoints, and existing members are reviewed to determine if they fall within a cumulative 5% market cap range around these new market capitalization breakpoints. If an ...


5

You can buy some S&P futures or go one step further and buy the underlying stocks that compose the index (which is what future/cash arbitrageurs do). But unless you are interested in a very specific arbitrage, buying SPY and selling calls on SPY would by and large achieve the same outcome.


5

In practice, most (maybe all) stock indices are constructed by taking a weighted average of stock prices denominated in a single currency, and so the index implicitly does have that currency - as you suggest, US dollars for the S&P 500. In principle you can buy one "unit" of the S&P 500 for $2,132.98 or whatever by buying an appropriate quantity of ...


5

There's no need for an index to have a currency as its purpose is not to act as an asset but rather to signal investors about the performance of a collection of stocks. An index can be price-weighted, meaning that its value equals the (arithmetic) average of the prices of each stock in the index. With no stock splits, the return on this index is the same as ...


5

NDAQ is the ticker for stock in the company Nasdaq, Inc., which derives income from managing the exchange (transaction fees, listing fees, real-time quote feeds, etc). Here is their description of themselves: http://business.nasdaq.com/discover It's not the same as investing in one of the "Nasdaq" indexes, such as Nasdaq Composite or Nasdaq-100. Those you ...


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