Wilshire 5000

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Wilshire 5000 Index from 1971-2024 Wilshire 5000 Index.webp
Wilshire 5000 Index from 1971-2024
US bond market compared to total stock market cap (Wilshire 5000). Mortgage-backed securities not shown.
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Wilshire 5000
Corporate bonds
Municipal bonds
US Treasuries US bond market cap compared to stock market cap.webp
US bond market compared to total stock market cap (Wilshire 5000). Mortgage-backed securities not shown.
  Wilshire 5000
  Corporate bonds
   Municipal bonds

The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all American stocks actively traded in the United States. As of December 31, 2023, the index contained 3,403 components. [1] The index is intended to measure the performance of most publicly traded companies headquartered in the United States, with readily available price data (Bulletin Board/penny stocks and stocks of extremely small companies are excluded). Hence, the index includes a majority of the common stocks and REITs traded primarily through New York Stock Exchange, NASDAQ, or the American Stock Exchange. Limited partnerships and ADRs are not included. It can be tracked by following the ticker ^FTW5000.

Contents

History

Record high values

TypeDate SetValue
Highest ClosingWednesday, February 19, 202561,616.59
Highest IntradayWednesday, February 19, 202561,667.52

Versions

There are five versions of the index:

The difference between the total return and price versions of the index is that the total return versions accounts for reinvestment of dividends. The difference between the full capitalization, float-adjusted, and equal weight versions is in how the index components are weighted. The full cap index uses the total shares outstanding for each company. The float-adjusted index uses shares adjusted for free float. The equal-weighted index assigns each security in the index the same weight.

Calculation

Let:

The value of the index is then:

At present, one index point corresponds to a little more than US$1 billion of market capitalization.

The list of issues included in the index is updated monthly to add new listings resulting from corporate spin-offs and initial public offerings, and to remove issues which move to the pink sheets or that have ceased trading for at least 10 consecutive days.

Alternatives

The CRSP U.S. Total Market Index (ticker CRSPTM1) is a very similar comprehensive index of U.S. stocks supplied by the Center for Research in Security Prices. It was especially designed for use by index funds. After Dow Jones and Wilshire split up, Dow Jones made their own total stock market index, called the Dow Jones U.S. Total Stock Market Index, similar to the Wilshire 5000.

Of the popular indexes, the Wilshire 5000 has been found to be the best index to use as a benchmark for US stock valuations. [9]

See also

References

  1. 1 2 "Wilshire Associates - Wilshire 5000 Fact Sheet" (PDF).
  2. "Average U.S. Stock at all-ime high as Wilshire index sets record - Mark Hulbert - MarketWatch". www.marketwatch.com. Archived from the original on 27 September 2013. Retrieved 17 January 2022.
  3. Hulbert, Mark (2006-09-28). "Losses from 2000-02 bear market have now been erased". MarketWatch. Retrieved 2009-03-23.
  4. "Happy anniversary? U.S. stocks mark 10 years of negative returns". Pensions & Investments. March 24, 2010.
  5. "Wilshire Indexes News Release, December 7, 2009" (PDF). Wilshire Associates Incorporated. Retrieved 2010-01-04.
  6. "Wilshire 5000 Total Market Inde (^W5000) Historical Data - Yahoo Finance". finance.yahoo.com.
  7. "Wilshire: Index Calculator Result".
  8. "Wilshire 5000 Methodology" (PDF).
  9. French, Jordan (2017). "The one: A simulation of CAPM market returns" . The Journal of Wealth Management. 20 (1): 126–147. doi: 10.3905/jwm.2017.20.1.126 . S2CID   157283776.