Thanks to their low costs and tax efficiency, some of the most popular exchange-traded products are ETFs. When choosing the right ETF index to reach your goals, it is a good idea to keep a couple of key things in mind. First, it is helpful to research the method of weighing each of the indexes under consideration. It is typical to begin with cap-weighted indexes. It also beneficial to preview the index providers.

S&P 500 Index

For a solid representation of the U.S. domestic economy, investors can look to the S&P 500 Index. As indicated by the name, the index invests in the 500 largest firms in the United States. For benchmark inclusion, the companies must have a 50% public float. For a closer look, investors can study the ETF tracking list and note specific characteristics. The symbol and name of the ETF verifies which it is. In general, the price is noted, as is the most recent percentage change. The dollar value of the assets is listed, and the volume is included. Finally, the year to date percent of return is noted on ETF lists. It can also be helpful to drill down and look more closely at the additional data provided, beginning with a breakdown of returns as historical data.

MSCI World Index

As evidenced by its name, the MSCI World Index provides a representation of the performance of stocks available to global investors. When reviewing ETFs that track this index, investors will see similar data provided as that which is listed for the S&P 500. Investors might also consider exploring specific international ETF indexes through the MSCI information. The MSCI Brazil Index, for example, has garnered attention recently for its potential. In an index such as this one, the ETF invests in large-cap and mid-sized companies in Brazil. When interested in an ETF such as this one, investors would use information provided by the index and from research to understand the risks and advantages of investing. Details regarding the legal and regulatory climate in the country in question can help investors to spot prime opportunities.

FTSE Index

FTSE accurately boasts that they are a leader in indexing, with their indices used globally and in all of the major asset classes and markets. The FTSE 100 Index tracks performance of equity markets in Europe. When there are active ETFs to track, the information examined will be much like what is seen with the MSCI and S&P 500. The FTSE/Xinhua China 25 Index is another example to explore. Investors will find a number of indices review and research, including many for North America. Information located on the indices will typically include the ticker, the ETF name, the exchange and the ETF provider.

Other options do exist when choosing the right ETF index to reach your goals. These three are a good starting place, however, to begin researching and getting comfortable with ETFs. A better understanding of the investment products and their risks should help investors to make sound decisions when the time comes.