S&P 500

Last Updated: April 11, 2019

Overview

What is the S&P 500 Index?

The S&P 500 is a basket of the 500 largest U.S. publicly traded companies by market value.

It is a large-cap index. Meaning, for a company to be considered, its market value must be $10 billion or greater.

It's one of the most common benchmarks for U.S equity markets.

Who picks the stocks that make up the index?

A committee decides which stocks are included. They use factors such as liquidity, profitability, and market cap. You can see their full methodology here.

Anything else I should know?

This index is market-cap weighted. It is prone to be driven by a handful of stocks.

For example: In the first half of 2018, ten stocks accounted for all the gains with one stock, Amazon, accounting for almost two-fifths.

Ways to trade

(SPY) SPDR S&P 500 ETF

SPY Homepage

  • Total Assets: $274 billion
  • Div. Yield: 1.82%
  • Exp. Ratio: 0.09%
  • Options Available: Yes

(IVV) iShares Core S&P 500 ETF

IVV Homepage

  • Total Assets: $174 billion
  • Div. Yield: 1.92%
  • Exp. Ratio: 0.04%
  • Options Available: Yes

(VOO) Vanguard S&P 500 ETF

VOO Homepage

  • Total Assets: $102 billion
  • Div. Yield: 1.99%
  • Exp. Ratio: 0.04%
  • Options Available: Yes

Top ten holdings

Holdings are listed in order of their weighting.

Note: VOO weighs a few companies different than SPY and IVV.

SPY (SPDR)

  1. Microsoft (MSFT) 
  2. Apple (AAPL) 
  3. Amazon (AMZN) 
  4. Facebook (FB)
  5. Berkshire Hathaway. Class B (BRK.B)
  6. Alphabet. Class C (GOOG)
  7. Johnson & Johnson (JNJ) 
  8. Alphabet. Class A (GOOGL)
  9. Exxon Mobile (XOM) 
  10. J.P. Morgan Chase (JPM)

IVV (iShares)

  1. Microsoft (MSFT) 
  2. Apple (AAPL) 
  3. Amazon (AMZN) 
  4. Facebook (FB)
  5. Berkshire Hathaway. Class B (BRK.B)
  6. Alphabet. Class C (GOOG)
  7. Johnson & Johnson (JNJ) 
  8. Alphabet. Class A (GOOGL)
  9. Exxon Mobile (XOM) 
  10. J.P. Morgan Chase (JPM)

VOO (Vanguard)

  1. Microsoft (MSFT) 
  2. Apple (AAPL) 
  3. Amazon (AMZN) 
  4. Facebook (FB) 
  5. Berkshire Hathaway. Class B (BRK.B)
  6. Johnson & Johnson (JNJ)
  7. J.P. Morgan Chase (JPM) 
  8. Alphabet. Class C (GOOG)
  9. Alphabet. Class A (GOOGL)
  10. Exxon Mobile (XOM) 

Dow Jones Industrial Average

Last updated: April 11, 2019

Overview

What is the Dow Jones Industrial Average?

Commonly referred to as the Dow. The Dow is a price-weighted average of 30 stocks that trade on the NYSE and Nasdaq.

The DJIA was invented by Charles Dow in 1896 and is the second oldest index after the Dow Jones Transportation Average.

It was created to serve as a proxy for the broader economy.

In the beginning, it included just twelve industrial companies.

This makes sense, the late 19th century was when John D. Rockefeller's Standard oil was amassing power and many of the industrial conglomerates we have today started in the late 19th and early 20th century.

Anything else I should know?

General Electric was part of the first index created on May 26, 1896. It stayed in the index until it was replaced by Walgreens on June 26, 2018.

One drawback

Since the index contains only 30 stocks, it may not be the best indicator of overall market performance; which is why the S&P 500 is the more common benchmark today.

Ways to trade

(DIA) SPDR Dow Jones Industrial Average ETF

DIA Homepage

  • Total Assets: $21 billion
  • Div. Yield: 2.07%
  • Exp. Ratio: 0.17%
  • Options Available: Yes

Top ten holdings

DIA (SPDR)

  1. Boeing Company (BA)
  2. United Health Group (UNH) 
  3. 3M Company (MMM) 
  4. Home Depot (HD) 
  5. Goldman Sachs (GS) 
  6. Apple (AAPL) 
  7. McDonald's (MCD) 
  8. Visa (V)
  9. IBM (IBM) 
  10. Johnson & Johnson (JNJ)

Dow Jones Transportation Average

Last Updated: April 11, 2019

Overview

What is the Dow Jones Transportation Average?

An index that consists of 20 companies from the transportation sector.

The average was created by Charles Dow in 1884; making it the oldest U.S. based stock index.

Anything else I should know?

The index includes:

Airlines-Southwest and American Airlines.

Rental & leasing-Avis Budget Group.

Railroad-CSX Corp.

Delivery services-FedEx Corp and UPS.

Marine transportation-Kirby Corp.

Ways to trade

(IYT) iShares Transportation Average ETF

IYT Homepage

  • Total Assets: $586 million
  • Div. Yield: 1.15%
  • Exp. Ratio: 0.43%
  • Options Available: Yes

Top ten holdings

IYT (iShares)

 

  1. Norfolk Southern (NSC) 
  2. Fedex (FDX) 
  3. Union Pacific (UNP) 
  4. United Parcel Service (UPS)
  5. Kansas Southern (KSU)
  6. Landstar (LSTR) 
  7. JB Hunt Transport (JBHT) 
  8. CH Robinson Worldwide (CHRW) 
  9. Expeditors International (EXPD)
  10. United Continental (UAL)

Nasdaq 100

Last updated: April 11, 2019

Overview

What is the Nasdaq 100?

It is a stock market index made up of the 100 largest non-financial companies listed on the Nasdaq.

It is a market cap weighted index but has certain rules to cap the influence of the largest components.

Anything else I should know?

This index is often confused with the Nasdaq composite; with the latter containing every company listed on the Nasdaq exchange.

Ways to trade

(QQQ) Nasdaq 100 ETF

QQQ Homepage

  • Total Assets: $73 billion
  • Div. Yield: 0.87%
  • Exp. Ratio: 0.43%
  • Options Available: Yes

Top ten holdings

QQQ (Invesco)

  1. Apple (AAPL) 
  2. Microsoft (MSFT) 
  3. Amazon (AMZN) 
  4. Alphabet. Class C (GOOG) 
  5. Facebook (FB) 
  6. Alphabet. Class A (GOOGL) 
  7. Intel (INTC) 
  8. Cisco Systems (CSCO) 
  9. Comcast Corp (CMSCA) 
  10. PepsiCo (PEP) 

Russell 2000

Last Updated: April 11, 2019

Overview

What is the Russell 2000?

It's a small-cap index of the bottom 2000 companies in the Russell 3000 index.

It's the most common benchmark for small-cap mutual funds.

Anything else I should know?

The index is an important indicator for the U.S economy because the companies in the index are smaller, domestically focused businesses.

The weighted average market cap is $2.4 billion.

Ways to trade

(IWM) iShares Russell 2000 ETF

IWM Homepage

  • Total Assets: $44 billion
  • Div. Yield: 1.28%
  • Exp. Ratio: 0.19%
  • Options Available: Yes

(VTWO) Vanguard Russell 2000 ETF

VTWO Homepage

  • Total Assets: $2.5 billion
  • Div. Yield: 1.37%
  • Exp. Ratio: 0.15%
  • Options Available: Yes

(SPSM) SPDR Portfolio Small Cap ETF

SPSM Homepage

  • Total Assets: $1.3 billion
  • Div. Yield: 1.53%
  • Exp. Ratio: 0.05%
  • Options Available: Yes

*Does not track the Russell 2000. This ETF tracks the SSGA small-cap index.

Top ten holdings

IWM (iShares)

 

  1. Etsy (ETSY) 
  2. Five Below (FIVE) 
  3. Trade Desk. Class A (TTD) 
  4. CREE Inc (CREE)
  5. Planet Fitness. Class A (PLNT)
  6. Hubspot (HUBS) 
  7. Entegris (ENTG)
  8. Primerica (PRI)
  9. Ciena Corp (CIEN) 
  10. Coupa Software (COUP)

VTWO (Vanguard)

  1. Etsy (ETSY) 
  2. Trade Desk. Class A (TTD) 
  3. Five Below (FIVE) 
  4. Integrated Device Technology (IDTI)
  5. Hubspot (HUBS) 
  6. Ciena Corp (CIEN)
  7. CREE Inc (CREE) 
  8. Primerica (PRI)
  9. Planet Fitness. Class A (PLNT) 
  10. Woodward Inc. (WWD)

SPSM (SPDR)

 

  1. Mr. Cooper Group (COOP) 
  2. Trade Desk. Class A (TTD) 
  3. Planet Fitness (PLNT)
  4. Versum Materials (VSM)
  5. CREE Inc. (CREE)
  6. Mellanox Technologies (MLNX)
  7. ITT Inc. (ITT) 
  8. Coupa Software (COUP) 
  9. Array Biopharma (ARRY)
  10. Insperity Inc. (NSP)

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