Benchmarks that slice broad markets into industry‑specific or idea‑driven baskets—allowing investors to target exposure to, say, semiconductors, renewable energy, or cybersecurity rather than owning every stock in a parent index. 1. Two Flavors—Similar DNA First, sector indices group companies by…
A numerical indicator that aggregates price or value data from a defined set of securities, assets, or economic variables—thereby transforming many moving parts into one easy‑to‑track figure. 1. Why Indices Exist To begin with, markets are awash with individual prices.…
A strategy that buys and holds a basket of securities designed to replicate a market index—thereby matching, rather than beating, the benchmark’s performance. 1. The Core Idea Instead of selecting individual “winners,” index investors purchase every constituent in a target…
Financial indices convert thousands of live prices into a single, continuously updated number. Understanding the math behind that headline figure clarifies why two benchmarks tracking the same market can behave so differently. 1. Start With a Universe First, an index…
S&P global 100 is a mega‑cap index that assembles 100 of the world’s largest, most internationally diversified companies, thereby offering investors a concise snapshot of global blue‑chip performance. 1. Why the Index Exists First and foremost, the S&P Global 100 bridges regional…
S&P 500, widely regarded as the pulse of the U.S. equity market, aggregates 500 large-capitalization American companies across every major sector. Accordingly, the S&P 500 offers investors a real-time barometer of both corporate health and macro-economic sentiment, thereby setting the…