What is an index?
Last updated: 12 August 2026
An index is a collection of assets that represent a particular financial market or segment of it.
You can invest in the performance of an index via a single trade, and so gain exposure to a broad range of stocks and bonds without having to buy them individually. Spreading your investment this way reduces the risk that a single investment would have on your portfolio.
Indices are often used as a benchmark for the overall financial market or a specific sector. For example, the S&P 500 is an index that is comprised of the 500 largest US companies, and many investors consider it to be a barometer for the US economy as a whole.
etoro offers the option to invest in the performance of an index through a contract for difference (CFD).
In addition, etoro offers exchange-traded fund (ETF) trading. ETFs are investable securities that aim to mimic the performance of an index or other asset classes.
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