S&P 500

Updated 12/09/2018

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

SymbolETF NameAsset ClassTotal AssetsDiv. YieldExp. RatioOptions Available
SPYSPDR S&P 500 ETFEquity$263.4 Billion1.83%0.0945%Yes
IVViShares Core S&P 500 ETFEquity$160.4 Billion1.76%0.04%Yes
VOOVanguard S&P 500 ETFEquity$104.5 Billion1.92%0.04%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. Berkshire Hathaway. Class B (BRK.B)
  5. Facebook (FB)
  6. Johnson & Johnson (JNJ) 
  7. Alphabet. Class C (GOOG)
  8. J.P. Morgan Chase (JPM)
  9. Alphabet. Class A (G00GL)
  10. Exxon Mobile (XOM) 

IVV (iShares)

  1. Microsoft (MSFT)
  2. Apple (AAPL) 
  3. Amazon (AMZN) 
  4. Berkshire Hathaway. Class B (BRK.B)
  5. Facebook (FB)
  6. Johnson & Johnson (JNJ)
  7. Alphabet. Class C (GOOG) 
  8. J.P. Morgan Chase (JPM)
  9. Alphabet. Class A (G00GL)
  10. Exxon Mobile (XOM)

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

Updated 12/09/2018

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

SymbolETF NameAsset ClassTotal AssetsDiv. YieldExp. RatioOptions Available
DIASPDR Dow Jones Industrial Average ETFEquity$22.6 Billion2.00%0.17%Yes

Top ten holdings

DIA (SPDR)

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

Dow Jones Transportation Average

Updated 12/09/2018

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

SymbolETF NameAsset ClassTotal AssetsDiv. YieldExp. RatioOptions Available
IYTiShares Transportation Average ETFEquity$773.2 Million0.91%0.43%Yes

Top ten holdings

IYT (iShares)

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

Nasdaq 100

Updated 12/09/2018

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

SymbolETF NameAsset ClassTotal AssetsDiv. YieldExp. RatioOptions Available
QQQInvesco QQQEquity$67.9 Billion0.87%0.20%Yes

Top ten holdings

QQQ (Invesco)

  1. Microsoft (MSFT) 
  2. Apple (AAPL) 
  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

Updated 12/09/2018

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

SymbolETF NameAsset ClassTotal AssetsDiv. YieldExp. RatioOptions Available
IWMiShares Russell 2000 ETFEquity$46.3 Billion1.17%0.19%Yes
VTWOVanguard Russell 2000 ETFEquity$1.7 Billion1.17%0.15%Yes
SPSM SPDR Small Cap ETF*Equity$1.4 Billion1.47%0.05%No

*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. Hubspot (HUBS) 
  5. Integrated Device Technology (IDTI) 
  6. Ciena Corp (CIEN) 
  7. CREE Inc (CREE) 
  8. Cash (yes, literal cash)
  9. Primerica (PRI)
  10. Planet Fitness. Class A (PLNT)

VTWO (Vanguard)

  1. Five Below (FIVE) 
  2. Etsy (ETSY) 
  3. Integrated Device Technology (IDTI)
  4. Loxo Oncology (LOXO) 
  5. Hubspot (HUBS) 
  6. Ciena Corp (CIEN)
  7. Haemonetics Corp. (HAE) 
  8. Planet Fitness. Class A (PLNT) 
  9. CREE Inc (CREE) 
  10. Idacorp (IDA) 

SPSM (SPDR)

  1. Mr. Cooper Group (COOP) 
  2. Trade Desk. Class A (TTD) 
  3. Ciena Corp (CIEN) 
  4. Teradata (TDC)
  5. Coupa Software (COUP) 
  6. Versum Materials (VSM)
  7. ITT Inc. (ITT) 
  8. Insperity Inc. (NSP)
  9. Popular Inc. (BPOP) 
  10. Primerica (PRI)

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