When selecting index funds, look for one that tracks the broad stock market and charges a low expense fee, say Johnathan Clements from The Wall Street Journal and Nellie S. Huang from Kiplinger's Personal Finance. Index funds help investors avoid the high compounded costs charged by actively managed funds.Know More
Choose from index funds that are cap-weighted and equal-weighted, states John Jacobs from Forbes. Each type of index fund has its advantages, and an investor should examine his risk appetite and the potential for gain before making a choice. Market cap-weighted funds are less volatile and suited for those who want to reduce their risk, while equal-weighted funds are better for those who have the capacity to risk their capital looking for better returns.
An investor should also diversify his portfolio; he can choose from bond funds, funds with developed international markets or funds that track the U.S. stock market, states Clements. While the two funds that track the stock market help increase returns, the bond fund helps minimize losses. An index fund investment strategy with a portfolio that tracks various stock market indices ensures long-term profits at lower risks and at lower costs as the fund management expenses are minimal.Learn more about Investing
Daily stock market results appear in newspapers, such as The Wall Street Journal; on TV, such as on CNBC; online, such as TheStreet website; and on the radio, such as on CNBC Radio. Dow Jones Industrial Average, Standard and Poor's 500 Index and other indices provide online up-to-the-minute market coverage.Full Answer >
The Standard and Poor 500 is a stock market index of 500 top stocks on the New York Stock Exchange, according to About.com. The S&P 500 tracks the value of the shares these 500 companies have issued in order to get an overall picture of the stock market.Full Answer >
The U.S stock market averages a return rate of 11.69 percent based on Standard and Poor's 500, or S&P, a leading market index. The return rate is based on yearly averages that date back to 1926, according to leading financial expert Dave Ramsey.Full Answer >
Dow Jones index symbols are abbreviations of up to four letters that represent the companies listed on the Dow Jones Industrial Average stock market index. As of February 2015, there are 30 major American companies that are listed on the Dow Jones and have index symbols.Full Answer >