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

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.

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.

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.

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.

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.