How to invest in Amex Composite Index index funds in 2025

It only takes a few minutes to invest in the Amex Composite Index index. One of the simplest and most popular ways to invest is to buy shares in a Vanguard Amex Composite Index ETF through an online trading platform.

Where can I invest in the Amex Composite Index index?

According to our expert research, eToro is the best ETF broker to invest in Amex Composite Index index funds. 

Both Amex Composite Index ETFs and Amex Composite Index CFDs are available to invest in through eToro .

Here are three more places to buy the Amex Composite Index, ranked according to their cost, security, and features.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

How to invest in Amex Composite Index

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

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How do I invest in the XAX index?

The easiest way is to sign up to a stock broker, open an investment account, and buy shares in an Amex Composite Index ETF or CFD. This guide explains how to do it:

Step 1. Sign up to eToro

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We recommend using eToro to invest in Amex Composite Index. Sign up for a brokerage account and deposit some money. You may need to supply a form of photo ID to verify the account.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Step 2. Decide how to buy Amex Composite Index

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This boils down to choosing between an Amex Composite Index ETF or CFD. ETFs are generally better suited to investors who want to passively track the Amex Composite Index’s performance. CFDs offer a greater range of trading options: you can use leverage, short the index, or buy and sell it outside of trading hours.

Step 3. Invest in the Amex Composite Index

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Sign into your trading account and search for the Amex Composite Index. Hit the ‘buy’ button and enter the details of your purchase, such as how much you want to spend. Hit ‘buy’ again to execute the trade.

Step 4. Monitor your investment

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When you buy a CFD, the trade goes through more or less instantly, and you’ll be able to see your new open position in your trading account. ETF purchases can take longer, and if you buy outside of traditional trading hours it won’t go through until the next morning.

Your trading account will show the price change in the Amex Composite Index since you bought it, so you can see your profit/loss at a glance. Use that information, along with your own research, to decide when to sell the Amex Composite Index and close your position, ideally at a profit!

 

The different ways to invest in the XAX

As we mentioned above, there are numerous ways to put your money into the Amex Composite Index. ETFs and CFDs are the simplest options for beginners, but there are alternatives. Here’s a brief overview of each option and who it’s best suited for.

Amex Composite Index ETFs

An ETF (exchange-traded fund) is an investment fund traded on a stock exchange, much like a stock. Exchange traded funds can hold different assets, such as individual stocks, bonds, or commodities, or serve as a proxy for a stock market index.

An Amex Composite Index ETF is one way of investing in the Amex Composite Index. It’s simply an investment fund that mirrors the performance of the Amex Composite Index. When you buy shares in the fund, the value of your investment will rise or fall with the Amex Composite Index itself. 

ETFs are ideal for new investors because they have a very low minimum investment. You can start with a few pounds and get exposure to some of the world’s largest companies. They’re also practical if you plan on trading the Amex Composite Index index, because you can buy or sell shares in the fund throughout the day.

Examples of ETFs with XAX exposure

• iShares Russell 2000 ETF (IWM)
• SPDR S&P 600 Small Cap ETF (SLY)
• Invesco S&P SmallCap 600 Pure Growth ETF (RZG)

Amex Composite Index index funds

An index or mutual fund is an investment fund that aims to track the performance of a stock market index, such as the Amex Composite Index. It’s very similar to an ETF, in that there are low management fees and you can buy shares through your online broker.

However, there are a couple of differences. Amex Composite Index index funds are only priced at the end of each trading day, so you can buy or sell shares in the fund once per day. There may also be a higher barrier to entry, through a much larger minimum investment when you invest in Amex Composite Index index funds.

That means an Amex Composite Index mutual fund is better suited for long term investors with a higher initial budget, where the infrequent trading and barriers to entry are far less of an issue.

Amex Composite Index CFDs

CFDs (contracts for difference) are a way to speculate on Amex Composite Index price changes with more flexibility than if you use an ETF or index fund. A CFD is a ‘derivative’, which means it gets its value from the underlying asset – in this case the Amex Composite Index – but it’s separate from it.

As a result, CFDs can be leveraged, where you borrow money to multiply the size of the trade, or they can be used to go ‘short’, where you place a trade on the index to fall in value. You can also buy and sell them outside of regular trading hours.

All of this means Amex Composite Index CFDs offer the potential to outperform a fund that passively tracks the Amex Composite Index’s performance. Of course, you can also underperform it as well. Tools like leverage and shorting introduce a lot more risk, and are best left to experienced traders.

Amex Composite Index futures

Futures contracts are agreements to buy or sell the XAX at an agreed price on a set date in the future. Amex Composite Index futures are a means to predict how you think the index is going to perform over a set time frame, such as the next three or six months.

Most futures contracts involve leverage, so you only put up a small part of the total trade value (the margin) when you buy one. That makes futures more risky, and they require a bit more financial expertise to understand as well.

Some traders use futures as a hedge against the performance of stocks they own. For instance, if you own stocks that are part of the Amex Composite Index then you might want to short the Amex Composite Index so that you still make some money if the price falls.

Amex Composite Index stocks

Another way to invest in the Amex Composite Index is to buy shares in the individual stocks that the index tracks. It isn’t practical to buy every share in the index, but you can invest directly into a few of the most heavily weighted stocks in the Amex Composite Index in order to get broad exposure to its performance.

The most heavily weighted stocks in the Amex Composite Index tend to be the largest companies by market capitalisation. If you invest directly in those largest stocks, you gain exposure to the index without taking on the risk of all the underlying companies.

One reason to do this is that these larger companies with the highest market cap dominate the index anyway, so that it can give you the impression of a diversified portfolio while actually being reliant on the performance of those particular stocks.

For the Amex Composite Index index, the largest stocks you might choose to invest in are:

The flip side of investing directly like this is that you lose the diversification and stability that comes with buying into an entire index. It requires much more hands-on management to do your own stock picking, so it’s best suited to more experienced investors.

How much does it cost to invest in the Amex Composite Index index?

From $0 to $5, depending on how you invest. For each option, you must consider the cost of buying the actual asset, whether that’s an ETF, index fund, CFD, or share, plus the fees associated with it.

*A fee comparison of 3 leading brokers for example purposes

ETFs and CFDs are generally the cheapest option overall, as they have low fees and a low minimum investment. Index funds and mutual funds have low fees but may have a high minimum investment. Buying individual stocks is the most expensive option in absolute terms, because the share price of a single large company is often more than $100.

All options are likely to include a trading fee, which you pay each time you make a transaction. Some trading platforms offer zero-fee trading, with others it may be a few dollars. 

Then ETFs and index funds each have their own expense ratio. Expense ratios refer to an annual management fee, charged as a percentage of your total investment. Expense ratios are usually no more than 0.05%, so if you invest $1,000, you would pay $5 per year in management fees.

Should I invest in the Amex Composite Index index? 

Yes, Amex Composite Index investing is a great choice if you’re looking for a safer investment with more price stability compared to picking individual stocks. It gives you an instantly diverse portfolio with exposure to a broad area of the stock market.

The flip side is that you have less control over which companies you invest in. An index committee decides how the index works, and you can’t pick and choose the underlying companies you like the most. The Amex Composite Index is better suited to hands-off investors, compared to those who have the skills, experience, and desire to pick their own stocks.

What are the advantages of investing in the Amex Composite Index index?

An index provides instant stock market diversification, where you spread your risk across a large number of underlying companies, rather than one or two. Here are some more reasons why you might want to invest in the Amex Composite Index index:

• The index is diverse. The AMEX Composite comprises small and mid-cap companies from various sectors across the United States. This provides investors access to a diverse offering of businesses spanning many different industries. 
• It has a lot of growth potential. Small and mid-cap companies generally have better growth potential than larger ones. Investing in the AMEX means you’ll have access to the future growth of the companies that comprise it. 
• Many of its companies are priced low. As the index is made up of small and mid-cap stocks, valuations are low, especially when compared to more established businesses. This can lead to multiple opportunities for buying at a discounted price. 
• More potential for better performance. Historically, small and mid-cap companies have outperformed large-cap stocks over the long term as the potential for growth is considerably larger. 
• The index includes many unique companies. The index includes companies that are not included in other major indices, providing investors with access to unique investment opportunities.

What are the disadvantages of investing in the Amex Composite Index index?

The main risk of investing in the Amex Composite Index is that all the underlying companies are related in some way, so a broader economic downturn that affected the entire country would likely affect many stocks in the index at the same time. Here are some more risks of Amex Composite Index investing.

• It’s a high-risk and high-volatility index. Small-cap stocks are generally higher risk compared to others. This means investing in the AMEX can be volatile, so expect large price swings occasionally. 
• Liquidity is low. As the index is comprised of many small companies, interest is not as high as it is for better-known indexes. This results in low liquidity, which can make it challenging to buy and sell shares. 

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