The Dow Jones U.S. Completion Total Stock Market Index is a comprehensive stock market index that represents the entire U.S. stock market. This index is a subset of the larger Dow Jones U.S. Total Stock Market Index, which includes all U.S. stocks, while the Completion index focuses on small and mid-cap stocks.
Composition
The index tracks about 3,500 publicly traded U.S. companies, including both domestic and international companies. It includes stocks from all sectors of the economy, such as technology, healthcare, financials, consumer goods, energy, and more. This comprehensive index is an essential indicator of the U.S. economy’s health and its companies’ performance.
Methodology
S&P Dow Jones Indices, a joint venture between S&P Global, the CME Group, and News Corp, maintains the index.
The index’s methodology is based on a float-adjusted market capitalization approach, where companies with larger market capitalizations hold greater weight in the index.
The calculation of each company’s weight also takes into account the number of outstanding shares.
Importance as a Benchmark
Investors commonly use the Dow Jones U.S. Completion Total Stock Market Index as a benchmark to track their portfolio performance.
Fund managers also use it as a benchmark for their funds. Because the index encompasses a broad range of companies, it is viewed as a more precise representation of the overall U.S. stock market compared to narrower indices, like the S&P 500.
Performance
The performance of the Dow Jones U.S. Completion Total Stock Market Index is closely watched by investors and analysts as an indicator of the health of the U.S. economy. The index has historically provided strong returns for investors over the long term, although its performance can be more volatile than narrower indices due to its inclusion of small and mid-cap stocks.
Investing in the Index
Investors can gain exposure to the Dow Jones U.S. Completion Total Stock Market Index through exchange-traded funds (ETFs) or mutual funds that track the index. This allows investors to diversify their portfolios across a broad range of U.S. companies and sectors. Additionally, some investment firms offer separately managed accounts that invest in the index.
Overall, The Dow Jones U.S. Completion Total Stock Market Index is an important benchmark for investors and fund managers. It provides a comprehensive view of the U.S. stock market and allows investors to gain exposure to a wide range of companies across all sectors of the economy. By tracking the performance of this index, investors can gain insight into the health of the U.S. economy and the performance of its companies. Overall, the index is a valuable tool for investors looking to diversify their portfolios and track the performance of the U.S. stock market.
