The most popular indexes on e-mini market
About the Dow Jones Stock Index
(Dow Jones Industrial Average - the DJIA)
One of the oldest and most widely followed market gauges is the Dow Jones Industrial Average (the DJIA). It consists of 30 stocks, representing the companies considered leaders in their respective industries. DJIA stocks are widely held by individual and institutional investors alike. The 30 Dow stocks represent about a quarter of the value of all the stocks traded on the New York Stock Exchange, and about a fifth of the market value of all U.S. stocks.
A base-weighted aggregate methodology is used to calculate the value of the Dow Jones Index. This means that the level of the Index reflects the total market value of all its component stocks related to a particular base period. By multiplying the price of a company’s stock by its number of shares outstanding, the total market value of that company is determined. Statisticians call an index of a set of combined variables (such as price and number of shares) a Composite Index. In order to make such values easier to work with and track over time, an indexed number is used to represent the results of this calculation. Graphing a chart based on indexed values is easier than one that is based on actual values.
The DJIA e-minis and the liquid e-mini futures are considered to be the most popular futures contracts immediately after the NASDAQ 100 and the S&P 500 e-minis.
About the NASDAQ 100 Index
The NASDAQ 100 index represents a basket of the 100 largest, non-financial companies (both domestic and international) that are listed on the NASDAQ Stock Market. The Index is based on market capitalization. It represents major industry groups such as telecommunications, retail/wholesale trade, biotechnology, as well as computer hardware and software. The Index excludes financial and investment companies.
In terms of their popularity popularity, the NASDAQ 100 e-minis are ranked immediately behind the most heavily traded futures contracts - the S&P 500 e-minis.
About the Russell 1000 Index
The 1,000 largest companies that are part of the Russell 3000 Index make up their own index - the Russell 1000 index.
The Russell 2000 e-minis are more popular than the Russell 1000 e-mini index futures.
About the Russell 2000 Index
The Russell 2000 index consists of the 2000 smallest companies that are part of the Russell 3000 index. Based on their total market capitalization, the companies in the Russell 2000 Index represent about 8% of the total market capitalization of the Russell 3000 index.
The Russell 2000 index is one of the most frequently quoted indexes for small-cap companies; the Index is often quite volatile.
Russell 2000 e-minis and the liquid e-mini futures became one of the most traded futures on the market. They are popular with day traders.
About the S&P 500 Stock Index
The most widely used benchmark standard for comparing large-cap US stock market performance is the "Standard and Poor's" 500 Index (S&P 500).
The S&P 500 is a market-value-weighted index. This means that the level of the Index reflects the total market value of all its 500 component stocks relative to a particular base period (stock prices multiplied by shares outstanding). The S&P 500 Index a widely followed investment standard for measuring actual portfolio performance. Each company in the Index influences the overall Index's performance proportionally to its market value.
The S&P 500 e-mini index futures are the most popular e-mini contracts among index day traders. The number of S&P e-mini contracts traded per day exceeds the number of Russell 2000 e-minis by a factor of four.
©HGH Associated Press
3/3/2006
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