Most Popular Indices to Trade
The most popular indices follow the leading stocks of the world's major economic powerhouses, earning attention worldwide. From the S&P 500 to the FTSE 100 and the DAX, learn about the securities and markets they track and gain exposure to them through our trading platform.
What are stock market indices?
Stock market indices track the performance of selected stocks listed on one or more stock markets. They can be used by analysts, investors and traders to compare investments, track economic performance or inform investment products.
Each index is designed with a specific scope and purpose, such as tracking regional or national securities or certain company sizes and sectors. They can contain any number of stocks, with their overall values calculated in different ways too.
Read more about how they're designed, calculated and maintained.
How stock market index trading works
You can't trade stock market indices directly. You can trade financial products that track them, though, such as contracts for difference (CFDs). These derivatives allow you to speculate on price movements in both directions without owning the underlying assets.
Another option is to trade the individual stocks an index contains. This gives you greater choice but demands extra time and trading fees, especially if you want exposure to tens or hundreds of stocks.
The most popular indices to trade
There are countless stock market indices available, but a small number have achieved greater popularity and fame than others. They tend to track the premier securities of the world's biggest economies, with many major indices quoted in news reports as gauges of economic health. While price dips are expected for any index, many have performed reliably well over time too.
We've highlighted some of the most popular stock market indices in the world below. All of them usually have high liquidity and widespread news coverage, making trading and analysing them easier.
S&P 500
The S&P 500 tracks the top 500 companies by market capitalisation – and other factors – listed on several US stock exchanges. It's a broad, diverse index that's seen as the leading measure of the US economy, accounting for around 80% of total available market capitalisation.
The index was launched in 1957 and is maintained by Standard and Poor. While subject to review quarterly, it represents major industries including information technology, healthcare and financial services. Its major holdings include household names such as Apple, Microsoft and Amazon .
Its value is market-capitalisation-weighted, giving greater influence to companies with larger market capitalisations.
Dow Jones Industrial Average
Launched way back in 1896, the Dow Jones Industrial Average follows 30 blue-chip companies listed on US stock exchanges. It's commonly known as the Dow and remains an important benchmark for the American economy, despite having fewer constituents than the S&P 500.
The index initially tracked 12 industrial companies, broadening its horizons over time under the management of Standard & Poor. Today, it covers a range of sectors and globally famous constituents, such as Coca-Cola, Nike and Visa.
The Dow is price-weighted, distinguishing it from the S&P 500.
FTSE 100
Crossing the Atlantic Ocean, the FTSE 100 tracks the top 100 companies by market capitalisation listed on the London Stock Exchange. It's seen to provide a measure of the UK economy, representing around 80% of market capitalisation, though many of its major constituents do much of their business internationally.
The FTSE 100 was launched in 1984, standing for the Financial Times Stock Exchange, and is managed by FTSE Russell. Today, it represents major sectors including energy, healthcare and financial services. Key securities hailing from each of these sectors include Shell, AstraZeneca and HSBC.
NASDAQ 100
Heading back stateside, the NASDAQ 100 includes 100 of the largest non-financial companies listed on the Nasdaq stock market by market capitalisation. While not exclusively tech-focused, it's seen as a measure of the US technology sector thanks to its mainly internet, electronics and software holdings.
The index was launched in 1985 and continues to be managed by Nasdaq. It tracks several high-profile tech stocks such as Meta, Amazon and Alphabet, the parent company of Google. And given their fast growth and higher risk tendencies, the index tends to be more volatile than the S&P 500 and the Dow.
DAX
The DAX tracks 40 – having recently expanded from 30 – of the largest German companies listed on the Frankfurt Stock Exchange by market capitalisation. Accounting for roughly 75% of the exchange, it's used as the premier investment benchmark for the sizeable German economy.
The index was first published in 1988 and is calculated by Deutsche Börse AG. It's diversified across sectors such as industrials, insurance and automotive, with no single component given more than a 10% weighting. Major constituents include Siemens, Allianz and Airbus.
Of the most popular stock indices, the DAX tends to be more volatile than the US and UK options, presenting plenty of opportunities for traders.
Other most popular stock indices
There are countless more options for traders looking for exposure to different markets. Other notable indices include:
- Nikkei 225: Launched in 1950, a price-weighted index tracking 225 companies on Japan's Tokyo Stock Exchange. Major sectors include technology, consumer goods, and materials, with well-known constituents including Toyota, Sony and Panasonic.
- ASX 200: A market-capitalisation-weighted index following 200 of Australia's largest companies since 2000. Major sectors are financials, materials and healthcare, with constituents including BHP, Commonwealth Bank Australia and Qantas Airways.
- Hang Seng Index: The major index of the Hong Kong Stock Exchange, first calculated in 1969. Finance and information technology are major sectors, including corporations such as HSBC, Tencent and AIA.
- CAC 40: Tracking the top 40 largest and most actively traded companies on the Euronext Paris by market capitalisation. Launched in 1987, with top constituents today including LVMH, TotalEnergies and L'Oréal.
- Euro Stoxx 50: Representing 50 of the largest companies in Eurozone countries by market capitalisation since 1998. Today's major constituents include ASML, Linde and Siemens.
How to add the most popular indices to your trading portfolio
- Sign up for a free Tradu account online.
- Read our index trading guides to hone your craft.
- Choose the major index – or indices – you wish to trade, from the Dow Jones Industrial Average to the Nikkei 225.
- Use fundamental and technical analysis to track and predict its price movements.
- Open, monitor and close your first position through CFDs, using appropriate risk management strategies.