What is Passive Investing and How Does it Work?

What is Passive Investing? Passive investing is an investment strategy that aims to maximize returns by minimizing the amount of active decision-making by the investor. Unlike active investing, where investors try to beat the market by actively buying and selling securities, passive investing involves buying a diversified portfolio of assets …

What Are Index Funds and How They Work

What Are Index Funds? How Do Index Funds Work? Index funds typically have low expense ratios compared to actively managed funds because they require less research and trading activity. This makes them an attractive option for long-term investors who want to passively invest in the overall market rather than trying …

The Nasdaq Composite Index: What It Measures And Why It Matters

What It Measures The Nasdaq Composite Index is a stock market index that measures the performance of over 3,000 common stocks listed on the Nasdaq stock exchange. It includes stocks from various sectors such as technology, telecommunications, biotechnology, retail, and more. The index is market-capitalization weighted, meaning that the companies …

Total Return Index Definition Example Vs Price Index

Total Return Index A total return index is a type of financial index that takes into account both the price performance of the underlying assets and any income generated by those assets, such as dividends or interest payments. Unlike a price index, which only reflects changes in the prices of …

Russell 3000 Index – Stocks and Limitations

INDEX TRADING STRATEGY Our INDEX TRADING STRATEGY is designed specifically for the Russell 3000 Index, one of the most widely followed benchmarks for the U.S. stock market. By focusing on this index, we are able to identify trends and patterns that can give you an edge in the market. One …

Profitability Index Definition Components and Formula

What is Profitability Index? The profitability index is a financial metric used to evaluate the profitability of an investment or project. It measures the relationship between the costs and benefits of an investment, providing insight into its potential profitability. By calculating the profitability index, investors and analysts can assess the …

Nasdaq 100 Index Explained: Weighting and Trading Guide

Nasdaq 100 Index Explained The Nasdaq 100 Index is a stock market index that includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. It is one of the most widely followed indexes in the world and is often used as a benchmark for the performance of …

FT Wilshire 5000 Index – Definition and Inclusions

FT Wilshire 5000 Index The FT Wilshire 5000 Index is a market-capitalization-weighted index that represents the performance of all publicly traded companies in the United States. It is considered to be one of the broadest measures of the U.S. stock market, as it includes stocks of companies of all sizes, …