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Indices are data tools which gauge the average price across a broad range of products with some common theme
Diversification being the only "free lunch" in investing, investors
index fund products for their lower (on-average) risk profile than individual assets
Indices are data tools which gauge the average price across a broad range of products with some common theme
Diversification being the only "free lunch" in investing, investors
index fund products for their lower (on-average) risk profile than individual assets
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The first known index was created in 1884--the Dow Jones Transportation Index (or "Transports")--by WSJ editor Charles Dow and his data scientist partner Edward Jones
Fun Fact: Dow is one of the "fathers of technical analysis"
The first known index was created in 1884--the Dow Jones Transportation Index (or "Transports")--by WSJ editor Charles Dow and his data scientist partner Edward Jones
Fun Fact: Dow is one of the "fathers of technical analysis"
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In 1896, the Dow Jones Industrial Average (DJIA) was enacted
To this day, DJIA remains one of the most popular indices, tracking the 30 largest U.S. equities by market capitalization
Then & Now
In 1896, the Dow Jones Industrial Average (DJIA) was enacted
To this day, DJIA remains one of the most popular indices, tracking the 30 largest U.S. equities by market capitalization
Then & Now
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The DJIA utilizes a price-weighted methodology, meaning A stock trading at $100 will make up 10 times more of the total index compared to a stock trading at $10
Modern indices often utilize a market-cap weighting to capture relative standing more accurately
The DJIA utilizes a price-weighted methodology, meaning A stock trading at $100 will make up 10 times more of the total index compared to a stock trading at $10
Modern indices often utilize a market-cap weighting to capture relative standing more accurately
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Index *Funds* are the products which are used to gain exposure to the assets an index tracks.
The invention of the index fund is credited to John Bogle, founder of @Vanguard_Group, in 1975.
Index *Funds* are the products which are used to gain exposure to the assets an index tracks.
The invention of the index fund is credited to John Bogle, founder of @Vanguard_Group, in 1975.
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There are many ways to weight an index, with varying tradeoffs. Some of which we see in DeFi:
-Market Cap (DPI)
-Price
-Equal (PIPT, DEFI+L, CC10)
-Fundamental
-Factor
-Volatility
There are many ways to weight an index, with varying tradeoffs. Some of which we see in DeFi:
-Market Cap (DPI)
-Price
-Equal (PIPT, DEFI+L, CC10)
-Fundamental
-Factor
-Volatility
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And Indices can track a broad range of themes by coverage, including:
-Country (S&P 500, FTSE 100)
-Exchange (NASDAQ, Euronext 100)
-Characteristic (small cap equities)
-Sector (DeFi Pulse, Nasdaq Biotech, REIT Index, Ark 3D Printing)
And Indices can track a broad range of themes by coverage, including:
-Country (S&P 500, FTSE 100)
-Exchange (NASDAQ, Euronext 100)
-Characteristic (small cap equities)
-Sector (DeFi Pulse, Nasdaq Biotech, REIT Index, Ark 3D Printing)
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In recent years, more tailored indices built around social change and disruptive technology have begun to thrive, driven by firms like @ARKInvest
@howardlindzon eloquently speaks to the unbundling of indexes here: https://howardlindzon.com/the-unbundling-of-indexes-and-markets-further-explained/
In recent years, more tailored indices built around social change and disruptive technology have begun to thrive, driven by firms like @ARKInvest
@howardlindzon eloquently speaks to the unbundling of indexes here: https://howardlindzon.com/the-unbundling-of-indexes-and-markets-further-explained/
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At @indexcoop, we believe in the power of tailored index products and the ability to bring them to life on Ethereum with @SetProtocol
DeFi Pulse Index is step one in a multi-decade plan to offer the easiest access to financial products which meet unique customer goals!
At @indexcoop, we believe in the power of tailored index products and the ability to bring them to life on Ethereum with @SetProtocol
DeFi Pulse Index is step one in a multi-decade plan to offer the easiest access to financial products which meet unique customer goals!
