Buying the index

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 ?
However, with the emergence of widespread buying the index surged to day's high of 28,298.
1550 points is the target of decline within subwave ([4]), where we recommend buying the index.
What the current market situation has done though is to make the market a stocks market again where stock selection becomes key rather than buying the index as our Shareleague demonstrated again last year.
If healthcare costs had been lower than expected (due, for example, to the unexpected efficacy of a new AIDS drug, or an unexpected mildness of a flu epidemic), then the company would have realized a loss on its futures contracts (due to buying the index at $65,000 and, six months later, selling it for some lesser amount), but this loss would be offset by the unexpected gain in underwriting income (due to the lower-than-expected loss ratio).