DOW JONES GLOBAL TOTAL STOCK MARKET INDEX
The Dow Jones Global Total Stock Market Index is a stock market index that tracks the performance of the stock markets of 57 countries. It is a broad measure of the performance of the world's stock markets and is an important indicator of the health of the global economy.
The index is calculated by taking the sum of the market capitalization of all publicly traded companies in each of the 57 countries and dividing that number by the sum of the market capitalization of all publicly traded companies in the world. The resulting number is then multiplied by 100 to create an index value.
The Dow Jones Global Total Stock Market Index was created in 1999 by Dow Jones & Company. It is based on the Dow Jones World Index, which was created in 1988 and tracked the performance of the stock markets of 25 countries. The Dow Jones Global Total Stock Market Index is a more comprehensive measure of the global economy than the Dow Jones World Index because it includes more countries.
The Dow Jones Global Total Stock Market Index is used by investors to track the performance of the global economy and to make investment decisions. It is also used by economists to measure the health of the global economy. The index is published daily by Dow Jones & Company.
Components of the Index
The Dow Jones Global Total Stock Market Index is composed of the following components:
- 57 country indices
- Over 9,000 companies
- All publicly traded companies
- Market capitalization of over $100 million
The country indices are weighted by the market capitalization of the companies in each country. The largest country index is the United States, which accounts for over 40% of the index's value.
Performance of the Index
The Dow Jones Global Total Stock Market Index has performed well over the long term. The index has returned an average of 7% per year since its inception in 1999.
The index has outperformed the S&P 500 Index, which tracks the performance of the 500 largest companies in the United States. The Dow Jones Global Total Stock Market Index has also outperformed the MSCI World Index, which tracks the performance of the stock markets of 23 developed countries.
