Archive - May 16, 2008

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What’s an Index? – An Introduction to Market Indices

What’s an Index? – An Introduction to Market Indices

When I meet with a prospective client for the first time, I try to explain a little about my approach to investments. On a couple of occasions when I’ve mentioned “index mutual funds,” someone has asked me, “what’s an index?” I’m always happy to get this kind of question; such questions help me remember that not everyone on the planet is a personal finance geek (and that’s a good thing).

The Earliest US Market Index

The idea of a market index, in the US at least, apparently began with Charles Dow, the founder of the venerable Wall Street Journal.  He …

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