What is the S&P Global Broad Market Index?
The S&P Global Broad Market Index (also known as the S&P Global BMI) is a widely encompassing, rules-based index that measures global stock market performance.
How Does the S&P Global Broad Market Index Work?
The S&P Global BMI covers approximately 11,000 companies from 46 countries and is converted daily into seven different currency amounts: USD, Euro, GBP, JPY, AUD, CAD and LCL.
The S&P Global BMI is comprised of the S&P Emerging BMI and the S&P Developed BMI. This means the S&P Global BMI includes both emerging and developed countries in its composition.
The S&P Global BMI is also one of the three indices from the S&P Global Equity Index series. The other two, S&P Frontier BMI and the S&P/IFCI, cover frontier markets and emerging markets, respectively.
To be considered for inclusion in the index, all listed stocks within the constituent country must have a float market capitalization of at least $100 million. For a country to be admitted, it must be politically stable and have legal property rights and procedures, among other criteria.
The top 10 constituents of this index fund can be found on the S&P Global BMI page.
Why Does the S&P Global Broad Market Index Matter?
The S&P Global BMI can be used as a benchmark for the global equities portion of an investor's portfolio and to track the performance of a specific emerging/developing markets stock, emerging/developing markets mutual fund, or emerging/developing markets ETF.
Though there is no ETF that directly tracks the S&P Global BMI, an investor may consider simply investing in the iShares S&P Global 100 Index Fund (NYSE: IOO) to increase exposure to several different regional markets.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
When the markets are up, everyone is excited about investing. When they are down, not so much. Long-term historical stock...
Read More →
Without realizing it, our everyday rants about housing, grocery prices and car loans are sprinkled with...
Read More →
Mistakes are difficult to avoid in something as complex as home buying, especially for the first time home buyer. And it's the simple missteps that can end up costing you for years. After...
Read More →
"You can always trust the Americans to do the right thing, but only after exhausting all other possibilities." --Winston Churchill When it comes to our...
Read More →
The CMT program is offered through the Market Technicians Association (MTA). It...
Read More →
