Market Indices
Market Indices
In an effort to simplify investing, yet maintain a diversified portfolio, many investors will buy index funds. Index finds are a passive investing style. Rather than actively buying and selling stocks, they simply the stocks the index is comprised of. Trading this will insure that you do as well as the market overall. Index funds have low overhead costs because there is no active trading. The fund manager still buys and sells stocks when the index changes, or to react to new investments or redemptions, but otherwise doesn’t have much to do.
Here is a list of some very common US indices along with their trading symbol.
Dow DJI
NASDAQ composite IXIC
S&P 500 GSPC
Wilshire 5000 DWC
Russell 2000 RUT
Philadelphia Semiconductor SOXX
Dow Transports DJT
Dow Utilities DJU
NYSE Composite TVN
AMEX Composite XAX