--- title: Index description: What is an Index? ✓ What are the advantages of Index? ✓ Index and the costs ✓ ⇒ Read now! image: https://blog.stocksguide.com/hubfs/Index%20US.jpg --- [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) - [Portfolios](https://stocksguide.com/en/portfolios) - [Screener](https://stocksguide.com/en/screener) - [Charts](https://stocksguide.com/en/charts) - [Alerts](https://stocksguide.com/en/stock-metric-alerts) - Tools - Discover stocks - [Stock Screener](https://stocksguide.com/en/screener) - [Indices](https://stocksguide.com/en/indices) - [Sectors](https://stocksguide.com/en/sectors) - [Dividend-Topscorer](https://stocksguide.com/en/dividends-strategy/topscorer) - [Growth-Topscorer](https://stocksguide.com/en/high-growth-investing/topscorer) - [Levermann-Topscorer](https://stocksguide.com/en/levermann-strategy/topscorer) - Analyze stocks - [Charting](https://stocksguide.com/en/charts) - [Dividend Calender](https://stocksguide.com/en/dividends-calendar) - [Earnings Calender](https://stocksguide.com/en/earnings-calendar) - [Dividends-Strategy](https://stocksguide.com/en/dividends-strategy) - [Growth-Strategy](https://stocksguide.com/en/high-growth-investing/strategy) - [Levermann-Strategy](https://stocksguide.com/en/levermann-strategy) - Monitor stocks - [Dashboard](https://stocksguide.com/en) - [HGI Watchlist](https://stocksguide.com/en/high-growth-investing/high-growth-investing-watchlist) - [Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Notifications](https://stocksguide.com/en/users/edit#notifications) - [Hig-Tech-Wikifolio](https://stocksguide.com/en/high-growth-investing/high-tech-stock-picking-wikifolio) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Blog](https://blog.stocksguide.com) Search Search - [Contact Us](https://stocksguide.com/en/contacts/new) - [Contact Us](https://stocksguide.com/en/contacts/new) Search Search ![Index](https://blog.stocksguide.com/hubfs/Index%20US.jpg) May 08, 2023 | [Knowledge](https://blog.stocksguide.com/topic/knowledge) # Index A stock index, or simply index, is an important indicator of selected stock companies or their share prices. In simple terms:... [Lukas Langer](https://blog.stocksguide.com/author/lukas-langer) Share - [mailto:?&subject=Index&body=Index%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Findex)](mailto:?&subject=Index&body=Index%0A(https%3A%2F%2Fblog.stocksguide.com%2Fknowledge%2Findex)) - - - Table of contents 1. What is the index? 2. What indices are there? ## **What is an index?** A stock index, or simply index, is an important indicator of selected stock companies or their share prices. Indices can be used to show the average development of the market. A “market” is defined, for example, by country, sector or region. Therefore, indices can be used to compare different countries, stock companies and industries. The purpose of an index is to understand the general economic situation. The composition of the index is reviewed at fixed intervals (e.g. annually). Indices only ever reflect an average value. There are various calculation methods. It is important to distinguish between price and performance indices. ETFs and index certificates can be used to invest close to an index. In simple terms: a share index reflects the general price performance of several shares. It also serves fund managers as a yardstick for their own success. Their aim is to beat the market by outperforming the return of an index. ## **What indices are there?** The composition of an index can be fixed or variable. In the case of the German share index, companies are allocated by definition according to their market capitalization. Accordingly, a company may leave the index in the event of a recession, whereas another company may enter the index due to an economic upturn. Most indices are share indices, i.e. they relate to the stock market. The best-known German share indices are the DAX, the Euro Stoxx in the eurozone and the Dow and S&P 500 in the USA. In Asia, the Nikkei (Japan) and the Hang Seng (Hong Kong) are the most important leading indices. At a global level, the MSCI World Index, which tracks more than 1,600 shares from 23 countries, plays an important role. However, indices are not just for the equity market, but for all financial markets and commodities, such as bond or commodity indices. In addition, differentiation according to other criteria is also possible - for example as country or regional indices, sector or industry indices and strategy indices. [Knowledge](https://blog.stocksguide.com/tag/Knowledge) ![Lukas Langer](https://blog.stocksguide.com/hs-fs/hubfs/Lukas.png?width=70&name=Lukas.png) ### Written By: Lukas Langer Lukas Langer has a master's degree in industrial engineering. During his studies, he already gained practical experience in a DAX company and in management consulting. As an enthusiastic private investor, his goal is to help investors make better investment decisions with StocksGuide. ## You May Also Like ### [![Index](https://blog.stocksguide.com/hubfs/S%26P%20500.jpg) *May 08, 2023 | Knowledge* S&P 500](https://blog.stocksguide.com/knowledge/sp-500) ### [![Index](https://blog.stocksguide.com/hubfs/Shareholder%20US.jpg) *May 08, 2023 | Knowledge* Shareholder](https://blog.stocksguide.com/knowledge/shareholder) ### [![Index](https://blog.stocksguide.com/hubfs/ETF%20US.jpg) *May 08, 2023 | Knowledge* ETF](https://blog.stocksguide.com/knowledge/etf) [View more blog posts](https://www.example.com) [![StocksGuideFianl](https://blog.stocksguide.com/hubfs/StocksGuideFianl.svg "StocksGuideFianl")](https://stocksguide.com/en) Binzallee 30, Zürich 8055 © 2024 aktien.guide AG - StocksGuide - [Features](https://stocksguide.com/en/product) - [Plans](https://stocksguide.com/en/premium) - Company - [About](https://stocksguide.com/en/about-us) - [Contact us](https://stocksguide.com/en/contacts/new) - [Privacy Policy](https://stocksguide.com/en/privacy-policy) - [Imprint](https://stocksguide.com/en/imprint) - Discover Stocks - [Blog](https://blog.stocksguide.com) - [Earnings Calendar](https://stocksguide.com/en/earnings-calendar) - [Dividend Calendar](https://stocksguide.com/en/dividends-calendar) - [Stock Screener](https://stocksguide.com/en/screener) - [Elite Dividend Stocks](https://stocksguide.com/en/continuity-toplists/listen) - [Dividend Aristocrats](https://stocksguide.com/en/dividend-aristocrats) - [Stocks](https://stocksguide.com/en/stocks) - [Glossary](https://lp.stocksguide.com/glossary) **Disclaimer** aktien.guide AG assumes no liability for the information presented, its accuracy and completeness. 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