The FT Wilshire 5000 Index (FTW5000) is a market capitalization-weighted index designed to capture 100% of the United States investable market. Initially known as the Wilshire 5000 Total Market Index, it was rebranded on June 30, 2021, following Wilshire’s partnership with The Financial Times.
Key Takeaways
- The FT Wilshire 5000 Index (FTW5000) aims to represent the entire U.S. investable market.
- Previously called the Wilshire 5000 Total Market Index (TMWX) before June 30, 2021.
- At its peak, the index contained over 7,500 stocks but currently includes 3,687.
Understanding the FT Wilshire 5000 Index (FTW5000)
Initially comprising nearly 5,000 stocks at launch, the Wilshire 5000 expanded to a high of over 7,500 in 1998 but currently stands at 3,687 stocks (as of Dec. 31, 2021). The index includes all U.S. equities with readily available prices, excluding thinly-traded and bulletin-board issues.
Like other market capitalization-weighted indices, the Wilshire overweights higher-valued companies and underweights lower-valued ones. As of Dec. 31, 2021, the sector weightings of the index were 28% information technology, 13% healthcare, and 13% consumer discretionary.
Special Considerations
Through its collaboration with The Financial Times, Wilshire introduced six other indices under the FT Wilshire 5000 Series. These include:
- FT Wilshire 2500 Index (FTW2500)
- FT Wilshire US Mega Cap Index (FTWUSG)
- FT Wilshire US Large Cap Index (FTWUSL)
- FT Wilshire US Mid Cap Index (FTWUSD)
- FT Wilshire US Small Cap Index (FTWUSS)
- FT Wilshire US Micro Cap Index (FTWUSO)
The FT Wilshire 5000 is intended to be the most broadly-based market index, mirroring the total market’s movement more comprehensively than indices like the S&P 500.
History of the FT Wilshire 5000 Index (FTW5000)
The FT Wilshire 5000 Index was launched by Wilshire Associates in 1974 under the original name. It was briefly renamed “Dow Jones Wilshire 5000” when Dow Jones & Company took over management in April 2004, until Wilshire reclaimed management on March 31, 2009.
Starting from a base value of 1,404.60 points on Dec. 31, 1980, the index experienced exponential growth, closing at a record high of 14,751.64 points by March 24, 2000. By Feb. 20, 2007, it had once again surpassed this level.
On April 20, 2007, the index closed above 15,000 for the first time, continuing its rise to a high of 15,806.69 points on Oct. 9, 2007—just before The Great Recession. After this downturn, the index reached an intraday high of over 20,000 points by Feb. 28, 2014, and ended the milestone above this on March 4. By July 1, 2014, it had closed above 21,000. As of Feb. 1, 2022, it traded at studies nearing 45,000 points.
Other Broad Market Indexes
Although the FT Wilshire 5000 is a premier broad-based index, other noteworthy indices include the CRSP US Total Market Index, which similarly aims to represent the full scope of U.S. equities with almost 4,000 holdings.
The Dow Jones U.S. Total Market Index (DWCF) is another market-capitalization-weighted index designed to cover the U.S. stock market broadly, maintained by Dow Jones Indexes. Likewise, the Russell 3000 Index, maintained by FTSE Russell, offers exposure to the largest 3,000 U.S.-traded stocks, encompassing approximately 98% of all U.S. equity securities.
Related Terms: CRSP US Total Market Index, Dow Jones U.S. Total Market Index, Russell 3000 Index.
References
- Wilshire. “FT Wilshire 5000 Index”.
- Wilshire. “Wilshire Launches Enhanced FT Wilshire 5000 Index Series”.
- American Enterprise Institute. “The Vanishing Stock Market”.
- Wilshire. “Indexes”, Select, FT Wilshire 5000 Index Series.
- Wilshire. “Our History”.
- Wall Street Journal. “Dow Jones Indexes, Wilshire Team Up on Financial Gauges”.
- GlobeNewswire. “Dow Jones Indexes Introduces Total Stock Market Index Family”.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Feb. 29, 2000-Mar. 31, 2000.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Jan. 31, 2007-Feb. 27, 2007.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Mar. 31, 2007-Apr. 29, 2007.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Sep. 30, 2007-Oct. 30, 2007.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Sep. 29, 2008-Oct. 29, 2008.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Feb 29, 2009-Mar. 30, 2009.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Feb 14, 2014-Mar. 13, 2014.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Jun. 26, 2014-Jul. 3, 2014.
- Yahoo! Finance. “Wilshire 5000 Total Market Index (^W5000): Historical Data”, Select Time Period, Feb. 1, 2021-Feb. 1, 2022.
- Center for Research in Security Prices, LLC. “CRSP U.S. Total Market Index”.
- S&P Dow Jones Indices. “Dow Jones U.S. Total Stock Market Indices Methodology”, Page 3.
- FTSE Russell. “Russell 3000 Index”, Page 1.
