These whole-sector tools allow us to look at how a chunk of the market is performing to better understand investment opportunities along with market fluctuations.
The S&P 500 (USA), DAX 30 (Germany) and FTSE 100 (UK) are a collective of each country’s largest companies based on their market capitalisation. As an index tracks a basket of publicly traded stocks, by following the index, traders can understand the broad movements of the market and plan out their investment strategy accordingly.