Investing in the Dow Jones as of late will see you investing in one of the most well known indexes in the usa inventory market lately. S&P (Standard and Poor’s) 500 Index: The index is based on the market capitalisation of the 500 leading publicly traded companies in the USA. DAX (Deutscher Aktien Index): Measures the performance of the 30 largest companies in Germany trading on the FWB. Dow Jones Euro Stoxx 50: Market capitalisation-weighted stock of the leading 50 large European companies operating within the Eurozone. FTSEurofirst 300 Index: Measures the performance of Europe’s largest 300 companies by market capitalisation. Hang Seng Index (HSI): Index monitoring the daily changes of the largest companies listed on the SEHK.
Nikkei 225: A price- weighted index of the leading 225 blue-chip companies on the TSE. It is an Index of the largest companies listed on the TSX as measured by market capitalisation. From the company website: The objective is to seek to provide excess return over the Russell 2000 Index while maintaining similar characteristics and sector weights relative to the benchmark.” The fund has done just that. The SSgA is an index fund which is supposed to mirror the Standard and Poors 500 index. This fund is published to have zero expenses and actually outperforms the index.
Fidelity US Bond Index is one of passively managed index fund offered by Fidelity investment. The fund aims to replicate the major characteristics of the Barclays Capital U.S. Aggregate Bond Index. The fund normally invests >80% of its total assets in bonds included in its followed index. You will need to provide $10,000 minimum balance to purchase this Fidelity US Bond Index fund.
The new management will try to match the index more closely than previous fund has returned 5.77% over the past year and 5.94% over the past 3 years. The fund lead manager is Christine Jones Thompson since fund has returned 4.20% over the past 3 years and 5.27% over the past decade. But if you live in New York and can stop for a day you can save up to $30 (if you smoke two packs a day). An index fund is a mutual fund that tries to mimic the returns of a stock market index.
So an index fund will buy all the stocks of the index and that’s it. If that sounds boring that’s because it is. That means an index fund buys stocks to own them, to mimic the returns of the stock market index and not to sell them later on for a quick profit. Finally, because index funds are so simple they consistently beat the returns of most actively managed mutual funds over the long haul. It will seem weird but if it’s an index fund you’ll actually look forward to days when prices fall.