What Is the Dow Jones Industrial Average?
The Dow tracks 30 large US companies weighted by share price, not market value. How it works, why price weighting matters and how it differs from the S&P 500.
CFD education by market group.
The Dow tracks 30 large US companies weighted by share price, not market value. How it works, why price weighting matters and how it differs from the S&P 500.
The DAX tracks the 40 largest Frankfurt-listed companies and includes dividends in its main version. How it is built, what moves it and how it trades.
The FTSE 100 tracks the 100 largest London-listed companies. Many earn abroad, so it often rises when the pound falls. How it works and what moves it.
Six VIX mistakes, each from mistaking it for something else: a compass, a price tag, a mirror, a safety rating, a savings account or a clock.
The Nasdaq 100 tracks the 100 largest non-financial Nasdaq companies, about 60% tech. How it is built, how concentrated it is and why it moves more.
The S&P 500 tracks about 500 large US companies by market value, covering about 80% of the market. How it works, how concentrated it is and what moves it.
On February 5, 2018, the VIX jumped a record 20 points and short-volatility products such as XIV collapsed. What happened, why and the lessons for traders.
The VIX measures expected S&P 500 volatility over 30 days from option prices. Why it spikes in sell-offs, its 82.69 record in 2020 and how to read its levels.
Stock indices move on the earnings of their largest members, interest rates, data, currencies, sector mix and flows. How each driver works, with examples.
The Russell 2000 tracks US small caps; the S&P 500 large caps. Why small caps are more sensitive to rates, credit and the domestic economy, compared.
The S&P 500 spans every sector; the Nasdaq 100 holds 100 non-financial firms, about 60% tech. Why their moves differ and why they have converged.
Price-weighted indices like the Dow give high-priced stocks more say; cap-weighted ones like the S&P 500 favor the largest firms. How each one works.