Are there more risks with indices?

[botsmarok]

There is nothing like easy or difficult in the financial markets. Just find a way that works for you and you are good to go. Like I trade indices with fxview and cmc markets, I take care of the correlation between global economic events and the price patterns of major indices I want to invest in like DAX & S&P500.

I read somewhere that DAX is a total return index and S&P 500 price return index. Though I know the difference between these two, I want to know which one you think is better for making overall gains.

 

[Lukeronchi]

I read somewhere that DAX is a total return index and S&P 500 price return index. Though I know the difference between these two, I want to know which one you think is better for making overall gains.

See for yourself. The S&P 500 is the price return index that says dividends aren’t included in the return calculations. The DAX on the other hand is a complete return index.

 

[jillchambers]

If you’ve read an article by The Wall Street Journal, the DAX has the tendency to reach high while when speaking of price returns it can go lower than the previous peaks.

 

[Lukeronchi]

@Jill Read that and probably that’s the reason why the DAX can attain record highs when compared to the major European indices including CAC 40, IBEX 35, and more.

 

[cortney302]

Well it’s all the way S&P 500 for me. Best part’s that it’s a mix of large and small cap companies.

 

[elizabethf]

Don’t forget that it’s the largest market cap German companies that are backing the DAX. I won’t be wrong to compare DAX to the Dow Jonas Industrials Average rather than S&P 500.

 

[Launcepeter]

Because of the integrated money management system, trading indices are quite secure and imo, a better option for many who find investing in individual stocks difficult and risky.

Well the lower fees, lesser reliance on the fund manager’s competence, and then the market-wide diversification is what makes the indices one of the safest investments I’ve ever made.