FT Wilshire 5000 Index (FTW5000)
What Is the Wilshire 5,000 Stock Market Index?
The Wilshire 5,000 Total Market Index is a stock market index that tracks the performance of (almost) the entirety of the publicly traded U.S. equity market. Like other stock indexes, it is a collection of stocks whose aggregate performance can be utilized as a kind of barometer for the market. It comprises huge number of American stocks and is considered by numerous investors and analysts to be the most dependable measure of the U.S. stock market at large.
The Wilshire 5,000 is so named in light of the fact that, at its origin in 1974, it included around 5,000 stocks. Once more toward the finish of the twentieth century, it developed to incorporate over 7,500 before contracting back to under 5,000. As of December 31st, 2021, the index included 3,687 stocks.
Since it incorporates a larger number of stocks than other well known bellwether indexes like the S&P 500, the Wilshire 5,000 is one of the most famous benchmarks against which to compare the returns of specific funds or individual portfolios. The index's ticker symbol is FTW5000.
How Is the Wilshire 5,000 Weighted?
There are really several variants of the Wilshire 5,000, each with its own weighting protocol. Most commonly, when investors and analysts examine the index or notice its value, they are alluding to the full-cap adaptation, which weighs component companies according to their unadjusted market capitalizations.
- Full Capitalization: The full-cap adaptation of the index weighs component companies by their total market cap (i.e., the total market value of all of their outstanding shares of stock).
- Float-Adjusted Capitalization: The float-adjusted rendition of the index weighs companies by their float-adjusted market cap, which considers the total value of all shares of stock that are accessible for public trading. This method bars shares that are "locked away" in light of the fact that they are held by company insiders or governments.
- Equivalent Weight: This form of the index gives each component company equivalent weight in the index's calculation paying little heed to company size.
What Are the Requirements to Be Listed in the Wilshire 5,000?
To be eligible for inclusion in the Wilshire, a stock must meet certain criteria. All included companies must:
- Be settled in the United States.
- Trade on an American stock exchange (like the NYSE or Nasdaq) — not an over-the-counter bulletin board (i.e., penny stocks are excluded).
- Make pricing data widely accessible to the public.
Top 10 Stocks in the Wilshire 5,000 by Market Cap
As of March 2022, the main 10 stocks in the Wilshire 5,000 by market cap were as follows:
- Apple (AAPL)
- Microsoft (MSFT)
- Alphabet Class C (GOOG)
- Alphabet Class A (GOOGL)
- Amazon (AMZN)
- Tesla Motors (TSLA)
- Nividia (NVDA)
- Meta (FB)
- United Health (UNH)
- Visa (V)
Could You at any point Invest in the Wilshire 5,000?
Since the Wilshire 5,000 is a stock index and not a fund, it can't be invested in straightforwardly. There are, in any case, a lot of funds that, similar to the Wilshire, track the performance of practically the whole U.S. stock market. Since total market ETFs are generally latently managed, they will more often than not have somewhat low expense ratios.
U.S. Total Stock Market ETFs
| Name | Ticker | Expense Ratio |
|---|---|---|
| Vanguard Total Stock Market ETFÂ | VTI | 0.03% |
| Vanguard Total Stock Market Index Admiral Shares | VTSAX | 0.04% |
| iShares Core S&P Total U.S. Stock Market ETFÂ | ITOT | 0.03% |
| Schwab Total Stock Market Index | SWTSX | 0.03% |
Highlights
- It already (before June 30, 2021) traded as the Wilshire 5000 Total Market Index (TMWX).
- The FT Wilshire 5000 Index (FTW5000) looks to capture 100% of the investible U.S. market.
- At its high point, the FT Wilshire 5000 Index had over 7,500 stocks yet presently has just 3,687.
FAQ
What number of Stocks Are Included in the Wilshire 5,000?
As of the finish of 2021, 3,687 stocks were remembered for the index. This number changes as publicly traded stocks are added and additionally eliminated from major stock exchanges.
What Does the Wilshire 5,000 Measure?
The Wilshire 5,000 measure the market capitalization of all publicly traded, U.S.- put together stocks that trade with respect to major exchanges like the NYSE and Nasdaq. It doesn't measure the market capitalization of privately traded companies or those that trade on the over-the-counter bulletin board market.
What Sectors Does the Wilshire 5,000 Represent?
In light of its enormous scope, the Wilshire incorporates stocks from basically every sector and industry. A considerable lot of the stocks that have the most influence on the index's value fall into the technology category. As a matter of fact, eight of the index's main ten stocks by market cap are technology companies.
When Was the Wilshire 5,000 Created? Who Manages It?
The Wilshire 5,000 was sent off by Wilshire and Associates in 1974. In April of 2004, Dow Jones and Co. cooperated with Wilshire and assumed the index's management, and "Dow Jones" was added to the front of the index's name. In 2009, this partnership ended, and management was by and by assumed by Wilshire and Associates. The index is presently collaborated with the Financial times and is known as the FT Wilshire 5,000.
Does the Wilshire 5,000 Include All U.S. Stocks?
No, the index just incorporates publicly traded U.S. stocks that trade on major exchanges. Privately traded companies and OTC "pink sheet" stocks are excluded.
