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No - indices are basically a (possibly weighted) average of prices. They're informational, not an investment product. That said, investment companies will freq
by mrosett 6y ago
No - indices are basically a (possibly weighted) average of prices. They're informational, not an investment product.
That said, investment companies will frequently launch funds that track some index. So the investment products like what you're describing may follower.
- dmurray 6y agoThese days, it's common for the tail to wag the dog, and to have an index that only exists to be tracked by some fund. (The Index of Stocks that Fund Manager X likes). It's not clear to me from the press release whether S&P Dow Jones are doing that here, or if they're planning to have a flagship index that lots of fund managers will be trying to track or beat.