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Christopher R. Hibbard, ChFC®, CRPC®, CFS®
Vice President, Wealth Management
Teachers Investment Services
Located at Teachers Federal Credit Union
5439 Sunrise Highway
Holbrook, NY 11741
Phone: 631-698-7000 Ext. 6020
Email: christopher.hibbard@lpl.com
CRPC conferred by College for Financial Planning.
September/October 2023
A Look at the Major Stock Indexes
There are approximately 5,000 indexes that represent the U.S. equity market. While you rely on these indexes as indicators of how the stock market is performing, you cannot invest in any index. Here’s an overview of the most widely used.
What Is an Index?
An index measures the performance of a group of stocks and provides a snapshot of what is happening across specific industries, businesses, and the U.S. economy as a whole. Indexes are weighted by factors such as price and market capitalization — the total value of a company’s outstanding stock shares.Dow Jones Industrial Average (DJIA)® - The First Index
The DJIA is a price-weighted index of 30 of the largest U.S blue-chip companies trading on the New York Stock Exchange and the Nasdaq. A price-weighted index gives stocks with the highest prices the most weight. The index got its start in 1886, after Charles Dow, Edward Jones, and silent financial partner Charles Bergstresser founded their own news agency called The Wall Street Journal. It was during this time that Dow developed his index as a way to measure stock market performance. As the oldest index, the DJIA is considered a gauge of the broader U.S. economy.S&P (Standard & Poor's) 500®
The S&P comprises 500 of the top companies in the U.S. and represents 80 percent of the total value of the U.S. stock market. Stocks are selected primarily based on market capitalization. The S&P 500 typically serves as an indicator of movement in the entire market.The Nasdaq Composite Index®
The Nasdaq (National Association of Securities Dealers Automated Quotations) is a market cap-weighted index of all stocks trading on the Nasdaq stock exchange. The index is heavily weighted in the tech sector and includes stocks in software, biotech and semiconductor industries, among others.A Few More
The Wilshire 500® — often called the “total stock market index” — includes all publicly traded companies based in the U.S.The Russell 2000® is an index of 2,000 small-cap stocks.
The S&P Midcap 400®, Russell Midcap®, and Wilshire U.S. Midcap Index® represent the midcap market.
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Christopher Hibbard is a financial advisor with, and securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Teachers Federal Credit Union (TFCU) and Teachers Investment Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Teachers Investment Services, and may also be employees of TFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of, TFCU or Teachers Investment Services. Securities and insurance offered through LPL or its affiliates are:
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