Wilshire 5000

Wilshire 5000 price

The Wilshire 5000 Total Market Index, or more simply the Wilshire 5000, is a market-capitalization-weighted index of the market value of all stocks actively traded in the United States. As of September 30, 2014 the index contained only 3,698 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 W5000. 30

History

Record High Wilshire 5000 Index Values

Type Date Set Value
Highest Intraday April 23, 2015 22,467.14
Highest Closing April 24, 2015 22,431.18

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:

 \alpha \sum_{i=1}^{M} N_i P_i

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.

See also

References

  1. 1.0 1.1 "Wilshire Associates - Wilshire 5000".
  2. http://www.marketwatch.com/story/average-us-stock-at-all-ime-high-as-wilshire-index-sets-record
  3. Hulbert, Mark (2006-09-28). "Losses from 2000-02 bear market have now been erased". MarketWatch. Retrieved 2009-03-23.
  4. http://www.pionline.com/article/20100324/DAILYREG/100329940
  5. "Wilshire Indexes News Release, December 7, 2009" (PDF). Wilshire Associates Incorporated. Retrieved 2010-01-04.
  6. http://finance.yahoo.com/q/hp?s=%5EW5000&a=04&b=1&c=2013&d=04&e=3&f=2013&g=d
  7. "Wilshire: Index Calculator Result".
  8. "Wilshire 5000 Methodology" (PDF).

External links