Today, there are over three million stock market indices in the world. Some of them are considered the largest and relate to the main world stock indices.
Here is a list of the world’s major indices:
1) S&P 500 (GSPC)
This is a widely known large global market index, which is estimated on the basis of stock prices of 500 companies. Such an indicator is quite difficult to calculate, but its assessment is accurate. The index is rendered the state of the broad market, which represents the main US industries.
The S&P 500 includes produce and service companies with low capitalization. The composition of the indicator can vary up to 50 times during the year.
2) The Dow Jones Industrial Average (DJI)
The Dow Jones Index is mainly used to sum up the state of the US industry. The index indicates how 30 large public companies set up the United States traded during a standard trading session.
Companies whose stocks are included in the index relate to various industries: finance, transport, consumer, food, and industrial sectors. The index includes such world-famous companies as Coca-Cola, IBM, Intel, Microsoft, General Motors, and others. In general, this is one of the most respected indicators in the United States.
3) NASDAQ Composite (IXIC)
Nasdaq Composite is one of the major indices of the New York Stock Exchange NASDAQ. This index is also one of the three most popular indices in the US stock markets.
The index is calculated based on the shares of the 100 largest capitalization companies. Among the listing of such companies are Google, eBay, Adobe, Apple, Facebook, Microsoft, and others. The Nasdaq Composite is not limited to only American companies as its opponents. It includes foreign companies as well.
4) NYSE Composite (NYA)
Nowadays NYSE Composite is also considered one of the most popular stock indexes in the world. This index reflects changes in the exchange rate of all shares listed on the New York Stock Exchange. Among them, there are stocks of more than 2000 largest companies registered both in the US and in other countries. Their capitalization rate is more than 20 trillion US dollars. Thus, the NYSE Composite is a convenient way to evaluate and understand the state of the US economy.
5) NYSE AMEX COMPOSITE INDEX (XAX)
The NYSE Amex Composite Index consists of stocks on the NYSE Amex stock market. The index represents the entire cost of both ordinary shares and American Depositary Receipts (ADRs) for companies listed on the AMEX exchange, which is considered the stock market for startups.
The NYSE Amex Composite Index measures the performance of stocks traded on the NYSE Amex. The movement of the index is influenced more precisely by stocks with higher market capitalization.
6) Cboe UK 100 Price Return (BUK100P)
Cboe is one of the top global stock firms that offer advanced solutions in investment and trading field for founders around the world. Cboe provides trading across a vast selection of products in various asset ranks and geographic regions. These include options, futures, US and European stocks, stock exchange products (ETP), world currency (FX), and products with volatility across several assets.
7) Russell 2000 (RUT)
The Russell 2000 is an index that is used to measure the dynamics of about 2,000 small-cap companies. The index includes companies from the financial sector, healthcare sector, consumer goods, technology companies. Among them are Etsy, Integrated Device Tech, Five Below, Haemonetics, Primerica, and others. These medium and small companies are more volatile and have greater growth potential than large-capitalization companies.
Moreover, a feature of small companies included in this index is their low dependence on foreign economic and political events. In general, Russell 2000 is a good indicator of the situation in the US market.
8) Vix (VIX)
The Volatility Index (VIX) is a determining indicator of stock market volatility and investor sentiment. The objective of VIX is to measure market expectations for the short-term volatility of the S & P 500.
VIX globally reflects concern or investor satisfaction. The default VIX value is 30 points. Accordingly, if the index value is above this mark, this indicates that the volatility and anxiety of investors have increased. A value below 30 means that the market is calm and investors are satisfied with the current situation.
9) FTSE 100 (FTSE)
The FTSE 100 Index is based on stock prices of the 100 most capitalized companies listed on the London Stock Exchange. The FTSE 100 Index belongs to the FTSE group, which is governed by the Financial Times and the London Stock Exchange. The FTSE group involves the account of company shares only if they are highly liquid and are in free float.
In general, this index is one of the most influential indicators of the European market and the leading British index.
10) DAX PERFORMANCE-INDEX (GDAXI)
DAX 30 is the most important and influential German index, which has a great influence on the economy of European countries. The index is an indicator of total capital gains of 30 blue chips traded on the Frankfurt Stock Exchange. Companies have a high level of capitalization, and their shares are freely traded and have high liquidity. The index is owned by Deutsche Börse AG.
11) CAC 40 (FCHI)
This index is the base stock index in France and is traded on Euronext Paris. It is built upon the shares of 40 large enterprises operating both in France and abroad. The index is compiled quarterly. Recommendations have been collected for this, and out of 100 companies included in the exchange’s top list, those 40 are selected whose assets meet such criteria as optimality for portfolio management, current assets for derivatives, free circulation, high level of capitalization, etc. ,
12) Nikkei 225 (N225)
Nikkei is one of Japan’s most important stock market indices. The index is an arithmetic average price index of 225 leading Japanese companies that are traded in the first section of the Tokyo Stock Exchange. The list covers companies whose shares are actively traded on the stock exchange. The list of companies included in the index is updated at least once a year.
13) HANG SENG INDEX (HSI)
Hang Seng is the most influential index in Hong Kong country. The index contains stocks with specially selected companies that are freely traded on the Hong Kong Stock Exchange. There are 34 such companies, they belong to different industries, and their capitalization is about 70% of the Hong Kong Stock Exchange. The Hang Seng index as a whole reflects the dynamics of the country’s economy.
14) EURONEXT 100 (N100)
This is the stock index of the pan-European exchange Euronext NV. It is made up of the greatest and most liquid assets that are traded on Euronext. Each asset included in the index must have a circulation rate of 20% per year. The composition of the index is reviewed quarterly based on an analysis of the volume and liquidity of assets.
15) Top 40 USD Net TRI Index (JN0U.JO)
The comprehensive return index (TRI) is calculated using net profits quota. The index tracks the results of the 40 largest stocks listed on the Johannesburg Stock Exchange (JSE). The index is weighted according to market capitalization calculated and published by the international provider of FTSE indices. Quarterly, the addition, removal, and rebalancing of constituent stocks take place.
In general, stock indices are intangible but highly liquid. You can trade them using stock options, futures contracts, and CFDs. Each of the methods has its advantages. You can easily trade this indices on IronFX, online trading platform – regulated by Financial Conduct Authority, CySEC and ASIC(without any IronFX scandal), every new client must pass a few basic compliance checks to ensure that you understand the risks of trading and are allowed to trade.
FAQ
- What are the three major indices?
Today the world’s three major stock market indices are S&P 500 Index, Nasdaq Composite, and Dow Jones Industrial Average.
- What is the World Stock Index?
The stock index is an indicator of the state and dynamics of the securities market. By comparing the current value of the index with its previous values, one can evaluate the behavior of the market, its reaction to various changes in the macroeconomic situation, and various corporate events.
- What is the name and symbol of the most famous stock index?
Today, the most famous indicator is the Dow Jones Industrial Average index, which unites the main US industrial companies.
- What are indices in forex?
In the Forex market, you can trade different indices, using CFDs. Forex
gives traders competitive spreads and execution on some of the world’s most popular indices.
- What is the largest index?
Generally, there are three the largest indices in the world. However, the S&P 500 (SPX) can be considered the largest one, but the opinions differ.
