What are the difference between S&P 500, Dow Jones and Nasdaq? Which are you invested in?

Nasdaq is an exchange that holds tech-related firms.

Dow Jones - or DJIA is an old index that is price-weighted - this would mean that price, not the market cap, will determine the makeup of the index. They target 30 of the biggest firms in the US.

S&P500 holds 500 of the biggest companies in the USA, this is a cap-weighted index - so the bigger the company, the bigger the representation.

S&P500 if a good benchmark to use as it has a good system in place to reshuffle companies on a yearly basis.

These are calculated indices for giving an impression as to the price development of the contained stocks. they differ in number of companies contained and industry/sector allocation importantly. NASDAQ and NASDAQ-100 are technology heavy, which S&P500 recently is also to some extent.

Investing products (ETFs) can be constructed to mirror the development of these stock 'basket' indices.

What to avoid in investing, You can read here:

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