Nasdaq. The Nasdaq Composite is mostly weighted in tech and internet stocks, which have high growth potential. However, the companies are speculative and risky, which makes the index more volatile.
- PowerShares QQQ (NasdaqGM: QQQQ)
Wilshire 5000. The Wilshire is one of the most diversified indexes in the world. It basically covers all of the public companies in the United States. Still, the Whilshire only contains U.S. companies, and the top 10% of companies in the index make up more than 75% of the index’s value.
- SPDR DJ Wilshire Total Market (NYSEArca: TMW)
Russell 2000. The Russell is a diversified index for small-cap companies. However, the index has its ups and downs. Rallies can come and go, but when small-caps are disfavored, the index could be stagnant for a long time. [Small-cap ETFs: leaders or laggards?]
- iShares Russell 2000 Index Fund (NYSEArca: IWM)
For more information on indexing, visit our indexing category.
Max Chen contributed to this article.