Stocks and indices
What an index is, which ones matter, and how to invest in them.
An index measures the performance of a group of stocks — a whole market, a region or a sector. It is a quick way to see how “the market” is doing, and the basis for most ETFs.
Well-known indices
S&P 500500 large US companies — the most common yardstick for the US market.
Nasdaq-100100 large non-financial companies listed on the Nasdaq, with a strong tech focus.
Dow Jones30 large US companies, weighted by share price.
MSCI WorldAround 1,400 large and mid-sized companies from developed markets.
Euro Stoxx 5050 large companies from the eurozone.
DAXThe 40 largest companies listed in Germany.
How to invest in an index
You can’t buy an index directly, but an index ETF follows it closely at low cost — as a single purchase or as a monthly savings plan.