One of the ETF 20, it charges 0.03% in expenses. Vanguard Total Stock Market ETF ( VTI, $154) tracks the CRSP Total Stock Market index, a market-cap-weighted index that folds in large-, midsize- and small-company stocks. The Wilshire 5000 Total Market index has long been considered a broad-market benchmark, though it has shrunk to fewer than 3,500 stocks over the years. stock market, Morningstar’s Johnson recommends investing in a fund that tracks a total-market index, such as the S&P 1500 or the Russell 3000. For the most neutral representation of the entire U.S. The fund, which has outpaced the S&P since the market bottomed in March, has an expense ratio of 0.20%. For a less top-heavy version of the index, consider Invesco S&P 500 Equal Weight ETF ( RSP, $102), which, as the name implies, tracks a version of the S&P that assigns equal weighting to all 505 stocks, from Apple to Zoetis. Our favorite: iShares S&P 500 Index ( IVV, $304), a member of the Kiplinger ETF 20 (our favorite ETFs), which charges just 0.04% in expenses. Several funds and ETFs replicate the index. The blue chip index SMI is the most important stock index in Switzerland and comprises the 20 largest stocks from the SPI. stock market and relatively transparent methodology, the S&P 500 is widely used as a bogey for mutual funds, and it is Kiplinger’s preferred proxy for the broad U.S. Big tech has seeped into the way we live our lives, and the index reflects that,” says Soe.īecause of its more diversified approach to tracking the U.S. “The history of the index shows us that it reflects the point in U.S. Still, at 23% of the index, tech is the best-represented sector. Though it sports the same top five holdings as the Nasdaq, they make up a more modest 21% of the S&P’s assets. economy and equity market,” says Aye Soe, of S&P Dow Jones Indices. stocks by market cap, the S&P 500 is meant to provide a “true barometer of the U.S. Actually composed of 505 of the largest U.S. The ETF mirrors the Nasdaq-100 index, which includes the 100 largest non-financial stocks in the composite index by market cap. Investors looking for a more concentrated play on big tech might like Invesco QQQ Trust ( QQQ, $236). During the 2000–02 bear market following the dot-com bubble, the price of the index sank by 78%, compared with 49% for the S&P and 34% for the Dow.įidelity offers two funds that replicate the Nasdaq: Fidelity Nasdaq Composite Index Fund ( FNCMX), which charges 0.36% of assets in expenses, and Fidelity Nasdaq Composite Index Tracking Stock ( ONEQ, $374), an ETF with an expense ratio of 0.21%. Of course, when tech flames out, so does the Nasdaq. Over the past 15 years, the Nasdaq, although highly correlated with the other headline indexes, has returned an annualized 11.9%, more than three percentage points more than the Dow and S&P 500. Pros' Picks: The 15 Best Nasdaq Stocks You Can Buy The Nasdaq’s top five stocks- Microsoft, Apple,, Facebook and Alphabet-represent 39% of the index. The index is market-cap-weighted, which means widely held, high-priced shares dominate, making it top-heavy with tech behemoths. The benchmark tilts toward fast-growing businesses-particularly tech stocks (currently 40% of the index), but also communications, consumer and biotech names-which has fueled the push to new highs. This well-populated index tracks about 2,700 stocks that trade exclusively on the Nasdaq exchange, the first fully electronic stock exchange. Investors looking for Dow exposure can try SPDR Dow Jones Industrial Average ETF Trust (symbol DIA, price $257), which tracks the index income seekers should consider the Invesco Dow Jones Industrial Average Dividend ETF ( DJD, $34), which holds Dow dividend payers weighted by yield. The Dow’s blue-chip stocks held up better than the S&P and the Nasdaq during the 2007–09 bear market, and the Dow sports a 2.4% dividend yield-the highest of the three indexes. Over the past 15 years, the index’s 8.9% annualized return edges the S&P 500. This material may not be published, broadcast, rewritten or redistributed without permission.All 30 Dow Stocks Ranked: The Pros Weigh Inīut the Dow still has its fans, and for good reason. The Russell 2000 is down 4.43 points, or 0.3%.Ĭopyright 2023 The Associated Press. The Russell 2000 index of smaller companies fell 28.28 points, or 1.6% to 1,756.82. The Dow Jones Industrial Average fell 74.15 points, or 0.2%, to 33,433.35. Treasury yields rose further into heights unseen in more than a decade. More than three out of four stocks within the S&P 500 fell alongside them, but gains for Apple and other influential Big Tech stocks helped to support indexes. Slumps for oil-and-gas stocks weighed on the market after crude prices gave back some of the sharp gains made since the summer. Most stocks closed lower Monday as the constrictor of higher interest rates tightened its coils around Wall Street.
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