Broad-Based Index


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Broad-Based Index

An index that consists of many stocks or stocks in many different industries. Broad-based indices are not terribly useful in gauging the performance of individual industries, but help give an indication on movements in the broader economy. An example of a broad-based index is the Wilshire 5000. See also: Narrow-based.
References in periodicals archive ?
The manufacturing index is characterized by both lower peaks and deeper troughs than the broad-based index. This can be attributed both to the continuing growth in many of the service-producing industries and to the cyclical sensitivity of the manufacturing industries.
Diak says his group's approach is somewhat different: "As we transition from mutual funds and individual stocks to [becoming] an ETF-focused shop, we're really focused [on] broad-based index funds to create the core for client portfolios," and have begun to add factor-investing, smart beta and low-volatility ETFs to create dividend and value-based holdings.
If a trader is looking at the market today, and believes that large caps and broad-based indices will rally in the short-term, using a Direxion Daily 3x leveraged ETF which tracks one of the positive movers, or the broad-based index itself, could be a fruitful short-term trade idea.
This book is an entertaining and informative guide that supports the development of a globally diversified portfolio consisting of multiple asset classes through the use of passively managed asset-class mutual funds, broad-based index funds, or their equivalent exchange-traded funds.
The S&P China 500 Index is one of the only broad-based indexes offering exposure to all Chinese equity share classes, listed both in Mainland China and internationally.