Friday, June 17, 2011

Common Indexes

Below are common indexes used by Exchange Traded Funds and other investment products.

The Dow Jones Industrial Average: The oldest barometer of the U.S. stock market and the one most often quoted in the media. The Dow tracks the stocks of 30 major companies from a variety of industries.

Standard & Poor’s 500 Index: Synonymous with the “U.S. stock market,” the S&P 500 tracks the stocks of 500 leading U.S. companies.

Dow Jones U.S. Total Stock Market Index: A measure of the entire U.S. stock market, the Dow Jones U.S. Total Stock Market. Index includes large, midsize, and small companies.

Russell 2000 Index: The Russell 2000 represents the smallest two-thirds of the 3,000 largest U.S. companies.

The Nasdaq Composite Index: The Nasdaq Composite Index includes the stocks of more than 3,000 companies listed on the Nasdaq Stock Market, including the stocks of many widely followed technology companies.

Morgan Stanley Capital International Europe, Australasia, Far East Index: Designed to measure developed markets equity performance outside North America, the MSCI EAFE Index tracks more than 1,000 stocks traded on 21 exchanges in Europe, Australasia, and the Far East.

Barclays Capital U.S. Aggregate Bond Index: A measure of the taxable, investment-grade U.S. bond market, including U.S. Treasury and corporate bonds, the Barclays Capital Aggregate Bond Index excludes low-quality bonds whose issuers are considered more likely to default.

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