What's an Index? The Dow®, S&P 500® & Nasdaq Explained

December 13, 2022 Beginner
You've probably heard about the Dow®, S&P 500®, and Nasdaq—but what does an index actually tell you? Learn why indexes matter to investors.
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This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risks, including the loss of principal invested.

Diversification does not eliminate the risks of investment losses.

Indexes are unmanaged, do not incur management fees, costs, or expenses and cannot be invested in directly.

"Standard & Poor's®," "S&P®," and "S&P 500®" are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"), and "Dow Jones®" is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and have been licensed for use by S&P Dow Jones Indices LLC and its affiliates and sublicensed for certain purposes by Charles Schwab Investment Management ("CSIM"). The "S&P 500® Index" and the "Dow Jones Index" are products of S&P Dow Jones Indices LLC or its affiliates, and have been licensed for use by CSIM. The funds are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, or their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, nor their respective affiliates make any representation regarding the advisability of investing in any fund.