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How To Track Stock Indices Using ETFs?





WSJ reviews the booming business of index-tracking ETFs. Here is a quick list of some ETFs that tracks major stock indices:

Dow Jones 30: DIA
Nasdaq 100 - QQQQ
S&P 500: SPY
Russell 2000 - IWM

From WSJ:

That party is already pretty crowded: Though trading volume in the iShares Russell 2000 Index ETF slowed this month, it has more than doubled over the comparable period in 2005, to nearly 10 billion shares. By comparison, trading in Dow-based Diamonds is up more than 5% to close to 1.5 billion shares. Trading in Standard & Poor's Depositary Receipts, which track the S&P 500, is up more than 14%.

Trading in the Nasdaq 100 index-tracking stock also is up more than 14%. Known widely by its QQQQ ticker symbol, that fund has the largest total volume of any ETF; nearly 22 billion shares have changed hands so far this year. Its average daily volume of nearly 108 million shares this year dwarfs the most actively traded individual shares, Yahoo's 57 million a day.

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