An index is a benchmark that is used to track the performance of assets using standardized methods. All indexes do not track the same assets. Some track the entire market whereas others focus on the segments or sectors of the market.
Since indexes measure the performance of sectors and markets, investors use them when making crucial investment decisions. All indexes are not created to measure market performance. Some of them are created to track inflation and interest rate, for example.
The following are some of the most top indexes in USA.
1. Dow Jones Industrial average(DJI)
The Dow Jones Industrial Average tracks the 30 largest companies in the United States. This index is well-known and fluently used around the world.
13 companies in the Dow Jones (not listed in order)
- UnitedHealth Group Incorporated (Ticker: UNH)
- Home Depot (Ticker: HD)
- Salesforce (Ticker: CRM)
- Caterpillar (Ticker: CAT)
- Walmart (Ticker: WMRT)
- 3M Company (Ticker: MMM)
- VISA Inc. Class A (Ticker: V)
- Boeing Company(Ticker: BA)
- Amgen Inc. (Ticker: AMGN)
- Goldman Sachs Group Inc. (Ticker: GS)
- Microsoft Corporation (Ticker: MSFT)
- Honeywell International Inc. (Ticker: HON)
- Johnson & Johnson (Ticker: JNJ)
2. The S&P 500 (.INX)
The S&P 500 index tracks the performance of the largest 500 publicly traded companies in the U.S.A. Investors around the world use this index to understand the direction of the market and the performance of the economy in general.
10 companies in S&P 5000 (not listed in order)
- Microsoft (Ticker: MSFT)
- Apple(Ticker: AAPL)
- Alphabet Class C (Ticker: GOOG)
- Facebook(Ticker: FB)
- Berkshire Hathaway. Class B (Ticker: BRK.B)
- JP Morgan (Ticker: JPM)
- VISA Inc. (Ticker: V)
- Johnson & Johnson (Ticker: INJ)
- Alphabet Cass A(Ticker: GOOGL)
- AMAZON (Ticker: AMZN)
3. Nasdaq Composite Index(.IXIC)
The Nasdaq Composite Index is a US index that focuses on the performance of over 2,500 companies listed on the Nasdaq stock exchange. Companies listed on this index come from all categories including but not limited to common stocks, REITs, American depository receipts, etc. according to Investopedia.
10 companies in Nasdaq Composite Index
- Microsoft Corporation (Ticker: MSFT)
- Apple (Ticker: AAPL)
- Amazon (Ticker: AMZN)
- Alphabet Class A (Ticker: GOOGL)
- Alphabet Class C(Ticker: GOOG)
- Netflix (Ticker: NFLX)
- Cisco Systems (Ticker: CSCO)
- PepsiCo (Ticker: PEP)
- Facebook (Ticker: FB)
- Intel Corporation (Ticker: INTC)
4. RUSSEL 2000 index
The RUSSELL 2000 index focus on the performance of the 2000 small cap publicly traded companies in the USA.
