Listen to a Business English Dialogue About Wilshire indices
Addison: Hey Louis, have you ever heard of the Wilshire indices in finance?
Louis: No, I haven’t. What are they?
Addison: The Wilshire indices are a series of stock market indices that measure the performance of various segments of the U.S. stock market, including the Wilshire 5000 Total Market Index, which represents the performance of all U.S. publicly traded stocks.
Louis: Oh, I see. So, they’re like benchmarks that investors use to track the overall performance of the stock market?
Addison: Exactly! The Wilshire indices are widely followed by investors and financial professionals as indicators of the broader market’s health and direction.
Louis: That sounds important. How do the Wilshire indices differ from other stock market indices?
Addison: While indices like the S&P 500 focus on large-cap stocks, the Wilshire indices provide a more comprehensive view of the entire U.S. stock market by including stocks of all market capitalizations.
Louis: I see. Are there different Wilshire indices for specific sectors or industries?
Addison: Yes, in addition to the Wilshire 5000 Total Market Index, there are sector-specific indices like the Wilshire U.S. REIT Index for real estate investment trusts and the Wilshire U.S. Micro-Cap Index for small-cap stocks.
Louis: Got it. Thanks for explaining, Addison. The Wilshire indices seem like valuable tools for tracking and analyzing the stock market.
Addison: No problem, Louis. They’re widely used by investors and analysts to assess market trends and make informed investment decisions.