The Relationship Between Stock Exchanges and Indices

Last year, I wrote about how the top 16 exchanges each have a market capitalization above $1 trillion.

That's a staggering amount of money being traded; but, how much of is it traded well?

82% of funds trailed their respective benchmarks over 15 years, and Indexes consistently beat stock pickers. 

With the NYSE and NASDAQ being the two biggest stock exchanges, looking at them can provide a lot of insight. The NYSE has 2058 companies, and the NASDAQ has 2588. 

 

via VisualCapitalist

 

With active managers' struggle to beat the market, many investors have moved to index-tracking funds (as of last year, investors withdrew $1.2 trillion from actively managed U.S. funds since 2007, according to Morningstar). 

My prediction, active management becomes a lot easier with AI and machine learning. You'll be hearing more about that from us soon.