How Indices differ
How indices differ
An investor looking for exposure to a particular market or market sector could have more than a dozen indices to choose from.
Each index has its own methodology (or set of rules as to what is included in that index) established by the index provider.
Common methodologies in equity indices include: number of constituents, capitalisation, style and sector composition.
For fixed-income ETFs, providers build indices around criteria such as credit quality and maturity.
iShares works with a range of well-known index providers across Europe, including:
- Dow Jones
- JP Morgan
- Standard & Poor’s