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What are the indexes?
You can't be a passive investor without knowing the indexes.
I did the homework for you.
Learn the 4 main indexes below......./
/...........THREAD
You can't be a passive investor without knowing the indexes.
I did the homework for you.
Learn the 4 main indexes below......./
/...........THREAD
1/ S&P 500
The Standard and Poor's 500 is an index comprised of 500 U.S. companies.
The 500 are large companies with a market cap > 8.2 billion
And this index is capitalization-weighted. Meaning the biggest companies have more shares in the index.
The Standard and Poor's 500 is an index comprised of 500 U.S. companies.
The 500 are large companies with a market cap > 8.2 billion
And this index is capitalization-weighted. Meaning the biggest companies have more shares in the index.
2/ DOW
The DOW Jones Industrial Average is an index of 30 large U.S. companies.
This index is price-weighted. Meaning higher-priced stocks influence performance.
This index is not considered to be a good representation of the economy.
The DOW Jones Industrial Average is an index of 30 large U.S. companies.
This index is price-weighted. Meaning higher-priced stocks influence performance.
This index is not considered to be a good representation of the economy.
3/ NASDAQ Composite
The NASDAQ Composite index is heavily comprised of stocks in the technology sector.
This index is based on the NASDAQ stock exchange. And is capitalization-weighted.
The NASDAQ Composite index is heavily comprised of stocks in the technology sector.
This index is based on the NASDAQ stock exchange. And is capitalization-weighted.
4/ MSCI EAFE
MSCI EAFE is an index designed to match international stock performance.
The underlying stocks represent developed markets in 21 countries excluding the U.S. and Canada.
This index is capitalization-weighted. And is the benchmark for foreign stock funds.
MSCI EAFE is an index designed to match international stock performance.
The underlying stocks represent developed markets in 21 countries excluding the U.S. and Canada.
This index is capitalization-weighted. And is the benchmark for foreign stock funds.
5/ All You Need
The S&P 500 and MSCI EAFE are all you need to start investing.
To get more diversification use the total market version of these indexes. It will add more small and mid-cap stocks.
The S&P 500 and MSCI EAFE are all you need to start investing.
To get more diversification use the total market version of these indexes. It will add more small and mid-cap stocks.
