Calculation Products (Indices)

Example

The S&P 500 Index is a calculation product that tracks the performance of 500 large-cap U.S. companies, serving as a benchmark for the U.S. stock market.

Key points

• Calculation products (indices) track the performance of specific asset groups or markets.

• Indices serve as benchmarks for investors to measure performance and market trends.

• Common indices include the S&P 500, Dow Jones, and FTSE 100.

Quick Answers to Curious Questions

A market index provides a benchmark for tracking the performance of a specific set of assets or markets, allowing investors to compare their investments against broader market trends.

Investors use indices to measure market performance, gauge trends, and assess the risk and returns of their portfolios.

Popular indices include the S&P 500, FTSE 100, NASDAQ Composite, and the Dow Jones Industrial Average.