The three most common types of indexes include: Learn more about global stock market indexes, regional stock market indexes, and national stock market indexes around the world, as well as some important considerations if you’re an investor looking to gain exposure using these indexes.
Global Stock Market Indexes
Global stock market indexes track equities from all around the world. For example, the MSCI World Index tracks large and mid-cap equities across 23 developed countries covering approximately 85% of the free float-adjusted market capitalization in each country. Along with the MSCI, some of the most popular global stock market indexes include:
FTSE All-World IndexS&P Global 100 IndexS&P Global 1200 IndexDow Jones Global Titans 50
Regional Stock Market Indexes
Regional stock market indexes track equities from specific regions around the world. For instance, these indexes may cover Asian, European, or Latin American equities. They help investors and analysts compare the performance of specific countries to a general region to highlight what assets are over- and under-performing. The funds tied to these indexes may also be helpful in building exposure to specific regions of the world. Some of the most popular regional stock market indexes are listed below.
Asia
S&P Asia 50 IndexDow Jones Asian Titans 50 IndexFTSE ASEAN 40 Index
Europe
Euro STOXX 50 Index FTSE Euro 100 Index S&P Europe 350 Index
Latin America
S&P Latin America 40 Index
National Stock Market Indexes
National stock market indexes provide exposure to individual countries. In some cases, the equities in these indexes will consist entirely of large-cap stocks, similar to the Dow Jones Industrial Average in the U.S. In other cases, the equities may be considered small-cap since the country may not have many large companies. This is often the case in emerging market and frontier market economies. Here are some of the top global and national stock market indexes.
China
SSE Composite IndexSZSE Component IndexCSI 300 Index
Japan
Nikkei 225 IndexTOPIX IndexJPX-Nikkei Index 400
Germany
DAX Performance IndexTecDAX IndexMDAX Index
United Kingdom
FTSE 100 IndexFTSE All-Share IndexFTSE techMark 100 Index
France
CAC 40 IndexCAC Next 20 IndexCAC Mid 60 Index
India
BSE SENSEX IndexNSE of India IndexMulti Commodity Exchange of India Index
Italy
FTSE MIB IndexFTSE Italia Mid Cap IndexFTSE MIB Index
Brazil
BOVESPA IndexIBrX 100 IndexITEL Index
Canada
S&P/TSX 60 IndexS&P/TSX Composite IndexS&P/TSX Venture Composite Index
South Korea
KOSPI IndexKOSDAQ Index
Other Stock Market Indexes
There are many other types of specialized stock market indexes for certain demographics. For example, the Dow Jones Islamic Market World and S&P 500 Shariah indexes are geared toward investors adhering to Islamic laws, while other indexes cater toward goals like Environmental-Social-Government (or ESG) investments. Some popular alternative stock market indexes include:
S&P Global BMI Shariah IndexSTOXX Global ESG Leaders Index
Invest in Stock Market Indexes
Investors can build exposure to these stock market indexes into their portfolios using mutual funds or exchange-traded funds that track the underlying index. For example, the iShares MSCI World ETF (URTH) tracks the popular MSCI World Index and provides exposure to global stock markets. When evaluating mutual funds and ETFs, investors should consider a variety of different factors, including the fund’s expense ratio, diversification, and other factors.
The Bottom Line
Global stock market indexes help investors and analysts describe the market and compare different investments. There are three types of stock market indexes, including global stock market indexes, regional stock market indexes, and national stock market indexes. Investors can leverage these indexes to gain exposure to international stock markets using mutual funds or exchange-traded funds tied to these indexes. Individual securities won’t necessarily track right with the index, but if they’re included in it, there will likely be some level of correlation. If you invest in an index fund, your fund should be much more correlated with the benchmark index.
