Indices: All-in-oneBe it the DAX, DowJones or MSCI World: You can use index funds, ETFs and certain derivatives to very simply invest in a barometer.
What indices are all about
Quite irrespective of whether you want to focus on a specific country, a region, or a sector, a stock index brings together the shares of certain corporations. The DAX, the German stock index, for example, groups the 30 largest publicly listed stock corporations domiciled in Germany – the same applies for the leading US index, the Dow Jones, as regards US corporations. Stock indices serve as an indicator for the respective market’s economic prowess and sentiment there. If the DAX rises for several weeks in a row, this points to a bullish market where people are busy buying, and likewise suggests that in Germany the economic prospects are rosy.
Owing to their respective weighting, larger companies that develop positively or negatively influence an index more than smaller corporations. What counts is first the so-called market capitalization (this is calculated from the current share price times the number of shares issued) and second the number of shares bought and sold, i.e., the exchange trading volume.
|DB DAX||11337.50||+2.37||11:14 PM|
|Citi DAX||11325.56||+2.06||9:59 PM|
|L&S DAX||11329.00||+2.23||10:59 PM|
|VDAX NEW||16.95||-4.43||5:30 PM|
|DB TecDAX||2593.25||+1.17||11:14 PM|
|EUWAX Sentiment||-53.33||-501.40||8:00 PM|
|Indices EU / USA / INT||Price||%||Time|
|DB Euro Stoxx 50||3250.00||+2.15||11:14 PM|
|DB ATX||3032.90||+2.47||11:14 PM|
|DB SMI||9280.00||+1.59||11:14 PM|
|DB Dow Jones||25892.00||+1.83||11:14 PM|
|DB S&P 500||2777.75||+1.32||11:14 PM|
|DB US Tech 100||7061.00||+0.71||11:14 PM|
|DB Nikkei 225||21245.00||+1.21||11:14 PM|
|Hang Seng||27900.84||-1.87||9:08 AM|
|Shanghai B||280.79||-0.49||8:00 AM|
The range of indices
- Be it the Nikkei in Japan, the CAC40 in France, the HSCEI in China or precisely the DAX: Country indices bring together a country’s most important publicly listed stock corporations.
- Regional indices, by contrast, do not reflect the trend in a specific country, but in an entire region – such as the EuroStoxx 50, which lists the 50 largest European blue chips.
- Sector indices group the most important corporations in a particular sector of the economy.
- Financial service providers compile additional indices. The best known is the MSCI World Index, which features the world’s 1,600 most important companies, from no less than 23 different countries, and thus is a good reflection of global economic sentiment. Moreover, ratings agency Standard & Poor’s publishes its S&P 500, which includes the 500 largest publicly listed companies in America. And there are countless other indices, too.
Invest in a stock index
Depending on whether share prices are heading up or down, stock market indices not only let you gauge how the overall market is faring; they can also serve as an investment vehicle.
- ETFs (exchange-traded funds) enable you to invest in an index in a way that exactly reflects the weighting in it and thus its composition, without having to buy the individual shares.
- Index certificates also trace different indices.
- Leveraged and investment products can refer to a stock market index as the underlying asset and offer you very defensive or evenly highly speculative investment opportunities.
At Börse Stuttgart you can buy and sell all these products on any trading day from 8 a.m. to 10 p.m.