S&P Dow Jones Indices is a company that provides solutions to help investors around the world identify, evaluate, and capitalize on investment opportunities.
S&P Dow Jones Indices
In this article, we will talk about Dow Jones, its services, and how the crypto market affects the stock market.
S&P Dow Jones was founded in 1896 by Charles Dow. With a 125-year history, the company has developed with the inspiration of Charles Dow and today produces solutions that change the investment world. Having ushered in the era of passive investing with index mutual funds, the company reaches many investors around the world.
S&P Dow Jones Indices Principles
The company believes in 100% transparency, making its indices and index calculation values entirely public. One of the most significant values of Dow Jones is its reputation. Since the company has been in existence for 125 years, it is very careful about its reputation and acts in accordance with IOSCO principles and regulatory standards.
S&P Dow Jones Services
The largest of the company’s services is index licensing. Index licensing is a service that reveals specific market trends and allows investors to better analyze the market while reducing market risks.
Index Licensing
Dow Jones works with more than 550 financial institutions around the world to create investment portfolios linked to its indices. The Index license consists of the following:
- Exchange-Traded Funds (ETFs)
- Futures and Options
- Annuities and Insurance Products
- Mutual Funds
- Structured Products
With the Index licensing product, institutions and investors have access to all the data they need to make their investments better.
Data and Benchmarking
An indispensable product for investors, banks, and asset managers, Data and Benchmarking is used to track, monitor and analyze global markets. Data packages are customizable by country and sector. All packages are divided into three different packages: index, constituent data, and corporate action information. The product consists of the following:
- Benchmarking
- Portfolios
- Research & Analysis
Users can track managed funds, monitor their portfolios and analyze performance through the application.
Custom Index Solutions
S&P Dow Jones works with banks, ETF providers, and asset managers worldwide to offer customized index solutions to its users. Custom solutions work in a similar way to other index products. All solutions are based on a robust infrastructure and the values used in the flagship products. Custom index solutions take clients’ investment ideas to the next level.
Was the Dow Jones Affected by the Silicon Valley Bank Collapse?
With the collapse of Silicon Valley Bank, many companies from the crypto sector were affected. In addition to Circle and BlockFi, which went bankrupt last year, many stablecoins experienced de-peg problems. The collapse of Silicon Valley Bank also had an impact on the stock market. The Dow Jones fell 0.28% on Monday. Despite the US government’s efforts to protect the stock market, many stocks fell.
Why Did the Cryptocurrency Exchange Affect the Stock Market?
There are several reasons why the events in the cryptocurrency market affected the stock market. First of all, companies like Dow Jones added crypto ETFs to their products in order to attract investors in the crypto market. Another factor is that many financial institutions and investors are not only limited to the stock market but also invest in the crypto market.
How Does it Affect the Stock Market?
At a time when the crypto sector is becoming more widespread day by day, it should not be surprising that an event in the crypto market affects the stock market. The cryptocurrency exchange has a system with fewer entries and rules than the stock market. This situation makes it very easy for stock market investors to enter the crypto sector, so many stock market investors may switch to the crypto market. In the same way, bad times in the crypto market can lead crypto investors to invest in the stock market.
Impact of Crypto-Based Companies
There are many crypto-based companies on the stock market. This is the most important indicator that a change in the crypto market can affect the stock market. For example, a company that mines bitcoin is affected by the decline of bitcoin. The stock of the company affected by the fall will also decline in the same way.
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