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Stock Indexes are created to classify, monitor and measure the performance of a group of listed Stocks. Indexes are developed to a standard set of metrics and methodologies, by the Index Creator.

A Stock Index is created to a standard set of metrics and methodologies defined by the creator of the Index, which is often the creator of a Family of Indexes. A Stock Index is created to classify Stocks by any number of different criteria and is used to monitor and measure the performance of a group of listed Stocks. Stock Indexes are extremely diverse and can be defined, for example as, a broad market index (S&P 500), a Sector Index (Financial or Pharmaceuticals), by region (European Autos) or by Market Cap (Russell Small Cap). In the creation of an Index Family, for example MSCI or FTSE Russell, the core methodology can be quite uniform, but the Indexes within this family can still be very diverse. Index tracking or passive investing via ETFs are based on an Index as defined in the Fund’s documentation.


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Warren William

Meet the author behind Smartest-Data. Warren William has a career in Finance and Investments extending over 35 years, both on the Buy Side and Sell Side. His most recent roles include, developing Institutional Risk Management Programs for managing Equity and Fixed Income Risk.  Prior to this Warren William work in Alternative Investments, in Investment Management and as a Buy Side Equity Analyst. Warren William brings a wealth of knowledge and expertise to the table, providing in-depth analysis and commentary on the latest trends in the Stock Markets. Contact information: or Telegram +393339034488

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Smartest Data aims to be your go-to source for analysis and commentary on Investments, Personal Finance and the Global Stock Markets. The aim is to provide our readers with insightful and actionable information for independent minded Investors.  Dissecting  the daily avalanche of Data produced by the Stocks Market by using data Websites  and Apps available to people at home. Join us, to be Driven by Data to navigate the Investment universe markets and make better informed investment decisions.