FT Wilshire 5000 Index (FTW5000)

Definition§

The FT Wilshire 5000 Index (FTW5000) is a stock market index that seeks to capture 100% of the investible U.S. stock market by tracking the performance of nearly all publicly traded companies in the United States. Originally known as the Wilshire 5000 Total Market Index (TMWX) before being rebranded on June 30, 2021, this index used to include over 7,500 stocks at its peak, but currently has about 3,687.

FT Wilshire 5000 Index vs Wilshire 5000 Total Market Index Comparison§

Related Terms§

• Stock Market Index: A statistical measure that reflects changes in the stock market, typically by tracking the performance of selected stocks.
• Market Capitalization: The total market value of a company’s outstanding shares, often used to gauge its size and investment potential.
• Investable Market: The portion of the entire market consisting of companies whose stocks can be bought and sold by investors.

Example§

If you decided to invest in a mutual fund that tracks the FT Wilshire 5000 Index, you would be investing in a wide-spanning portfolio aimed at capturing the performance of virtually the entire U.S. economy. It’s like having one foot in a luxury yacht and the other on a sturdy fishing boat. You might enjoy the view from the yacht, but sometimes you’ve got to throw a line over the side!

Insights & Humor 🤣§

• In its prime, the FT Wilshire 5000 Index was known as “the index with more stocks than a fish market!”.
• Notably, during a focus group on rebranding, one creativity chestnut was to call it “The Wilshire Index for All Stock Lovers”. I think they went with FTW5000 instead—thank goodness!

Fun Facts§

• The FT Wilshire 5000 Index was born in 1974 and has been a go-to for investors wanting to measure the overall performance of the U.S. equity market.
• At its height, the FT Wilshire 5000 Index had enough stocks to open a very large brokerage firm in a trendy co-working space!

Frequently Asked Questions§

• What is the purpose of the FT Wilshire 5000 Index?

  • Its primary purpose is to provide a comprehensive representation of the U.S. stock market, acting as a benchmark for investment performance.

• Why did the Wilshire 5000 change its name?

  • The rebranding to FT Wilshire 5000 was part of a partnership with The Financial Times to emphasize its global reach and trusted financial insight.

• How often is the index updated?

  • The FT Wilshire 5000 Index is updated daily, so it’s as fresh as your morning coffee!

References§

• FT Wilshire 5000 Index Overview
• Investopedia - Wilshire 5000 Definition
• “The Intelligent Investor” by Benjamin Graham: A must-read for understanding stock strategies!

Test Your Knowledge: FT Wilshire 5000 Index Quiz§

Thank you for reading! Remember, the stock market may be serious biz, but there’s always room for a little fun and laughter while investing! Keep learning and do well! 🌟