What is the Dow Jones U.S. Total Market Index?

The Dow Jones U.S. Total Market Index (DWCF) is a market-capitalization-weighted index Do꧅w Jones Indexes maintains that provides broad-based coverage of the U.S. stock market. The Dow Jones U.S. Market Index, considered a total market inde✤x, represents the top 95% of the U.S. stock market based on market capitalization. 

Understanding 💛the Dow Jones U.S. Total Market Index

The Dow Jones U.S. Total Market Index is also known as the "Dow Jones U.S. Index." The index includes most stocks, except the very smallest and least-liquid U.S. stocks. The Dow Jones large🎃-cap, mid-cap, small-cap, value, and growth indexes are constructed from the stock constituents of ๊the Dow Jones U.S. Total Market Index.

As an ꧑extremely broad index, the fund is further sliced by Dow Jones to create distinct sub-indexes that track every major segment of the market, according to stock size, sector, and others. All of the indexes are created and maintained according to an objective and transparent methodology with the fundamental aim of providing reliable, accurate measures of U.S. equity performance.

Added up, the Dow Jones U.S. Total Market Index includes about 3,741 stocks that trade on the U.S. stock exchanges; it includes large-, mid-, small- and micro-cap companies. The number does not include foreign securities, exchange-traded products, or other investm🐠ent companies.

The DWCF vs Other Broad Market Indexes

Broad market indexes only include securities with reasonable size and liquidity so that🦩 they can be purchased in 🌜an institutional size portfolio. Many micro-cap securities don’t trade with enough volume to be efficiently included in products such as index funds and exchange-traded funds (ETF).

The other most prominent total market indexes besides the Dow Jones U.S. Total Market Index include the Wilshire 5000 Total Market Index and the CRSP US Total Market Index. Al🥂l three indexes are float-adjusted and capi🧸talization-weighted.

Named for the nearly 5,000 stocks it contained at launch, the Wilshire 5000 Total Market Index (TMWX) is a 澳洲幸运5官方开奖结果体彩网:broad-based market capitalization-weighted index composed of 3,818 publicly traded companies that meet the following criteria: it is a U.S. based company; listed on a U.S. stock exchange; with publicly available stock pricing data. The Wilshire 5000 remains the most often used benchmark for the total U.S. equity market.

The 澳洲幸运5官方开奖结果体彩网:Russell 3000 Index is another market-capitalization-weighted equity index maintained by FTSE Russell that provides exposure to the entire U.S. 澳洲幸运5官方开奖结果体彩网:stock market. The index tracks the performance of the 3,000 largest U.S.-traded stocks which represent about 98% of all U.S. incorporated equity securities.  

The DWCF as a Research Tool

Indexes, like the Dow Jones U.S. Total Market Index, provide useful information and insight, like making it easier to understand past trends and changes in investing patterns. Indexes provide a helpful benchmark for making al🦩l types of comparisons, and also provid🌞e snapshots of trends, though not a detailed picture.

Indexes react to actual trades, and while investors may trade on the expectation of good or bad news, indexes are mathematical calculations that have nothing to do with emotion. In that respect, stock indexes may be more✱ valuable for providing a historical perspective than they are a means of forecasting future market movement. Theꦬy can be especially useful for spotting long-term trends.