ShmoopTube

00:00

finance a la shmoop what is the Wilshire 5000 well it's an index as in index fund

00:10

ticker W 5000 well the Wilshire 5000 had the top 5,000 most highly valued US [List of all the stocks in the Wilshire 5000]

00:17

stocks in it when it launched you know by the late 90s the index had added

00:21

another about 25 hundred names but it didn't change its name to Wilshire 7500 [Wilshire 7500 is crossed out and changed back to 5000]

00:27

and it changed names as companies split and spun off and as the internet IPO [Companies dividing into two]

00:32

boom forced a whole load of adds to the index there well then guess what a whole [Stocks flooding into the Wilshire 5000]

00:37

bunch of bankruptcies in the dot-com era came along you know along with mergers

00:40

and other financial dietary restrictions and they caused the size of the index to

00:45

fall to the you know 3,700 names zone where it sits today the Wilshire 5000 [Number of names in the index shrinking]

00:50

and yeah we don't know why then I'll just rename it the Wilshire 3,700 ish [Guy changing the sign as 3700ish appears and replaces the 5000]

00:55

either well its distinguished from say the S&P 500 in that it covers a much [The S&P 500 is moved away]

01:00

broader range of securities from mega cap companies like Apple all the way

01:05

down to companies with just a few hundred million bucks in market cap so [Examples of the smaller cap companies are highlighted]

01:09

when investors want to think about all stocks or at least the broadest swath of

01:13

them they think Wilshire and then a number but they think Wilshire anyway

01:17

and well we could give you roughly thirty seven hundred reasons why [Lady Gaga on stage]

Full Transcript