Index/Indices

Q: Index/Indices

An Index is a basket of stocks that is used to track and measure the performance of a specific market, market sector, asset class, etc. The most popular index is the Standard and Poor's 500, commonly referred to as the S&P 500. While you can't trade an index (indices plural) directly you can trade a mutual fund or ETF that tracks the index. Popular ETFs that track the S&P 500 are SPY and VOO .

Question

Index/Indices

Accepted Answer

An Index is a basket of stocks that is used to track and measure the performance of a specific market, market sector, asset class, etc.

The most popular index is the Standard and Poor's 500, commonly referred to as the S&P 500.

While you can't trade an index (indices plural) directly you can trade a mutual fund or ETF that tracks the index. Popular ETFs that track the S&P 500 are SPY and VOO.