Buying the index

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Buying the index

Purchasing the stocks in the S&P 500 in the same proportion as the index to achieve the same return.

Buying the Index

The act of buying all stocks tracked in the S&P 500 in proportion to their representation in that index. One buys the index when one wants to achieve the same return as the S&P 500 itself. The S&P 500 is the index used for this because it is considered an indicator of the state of the broader economy.
References in periodicals archive ?
ETFs provide investors with the ability to buy the index through a single trade on the exchange.
Razon said if you liked what you see, just buy the index or an exchange traded fund.
Inclusion in the Index will further support the development of the stock as investors buy the Index constituents to build and run a rage of investment products."
The only exception is US's index, of which we can only get a slightly larger index return using the trading strategy according to the Shiryaev-Zhou index, but the percentage return is much lower because we have to buy the index several times, making the total cost much larger.
Societe Generale's derivative strategists said the rally in the FTSE was now likely to pause and recommended that investors sell options to buy the index at 7,000 points by December.
"In the stock markets investors should be looking to stock pick and look for the jewels in the market rather than buy the index.
Consequently if you had been able to buy the index and reinvest the income you would have made a profit over the 10 years of around 9%.
So if your view is that commodities generally will rise, then to buy the index is a safer bet and surer way to profit...
Sum of 30 prices becomes $1408.54 Unwinding Sell the Diamonds shares for $112.69*13=$1464.97; use these funds to buy the index components for $1408.54 to cover the short.
Offering S&P index funds within variable policies seems to be a good idea, because that option gives policyholders a way to "buy the index," unaltered and with no manager involvement.
Plus Argos has agreed to buy the Index brand from Littlewoods, with 33 Index stores due to be converted to the Argos brand later this year.
Yet options to buy the index at 780, with expiration in one month, were listed around $1,900.