How to invest in the NYSE Composite Index

Looking to invest in one of the largest and most influential stock indices in the world? We can help with that.

The NYSE Composite Index offers a great opportunity to invest in a range of high performing stocks. There are numerous ways to invest in the NYSE Composite Index, so we’ve made this page to walk you through everything you need to know in order to make informed investment decisions.

What is the NYSE Composite Index?

The NYSE Composite is a stock market index consisting of more than 2,000 stocks, tracking all stocks traded on the New York Stock Exchange. About 80% of the stocks traded on the NYSE Composite are US-based, while the rest are from all over the world. The index is heavily focused on 10 of the biggest global industries, which include oil and gas, consumer goods, industrials, and healthcare.  

Is it a good investment?

It definitely can be, but the important question is whether it’s right for you. The top four stocks on the NYSE Composite have a combined market capitalisation of nearly $2 trillion by themselves, demonstrating that the index is home to a number of global powerhouse companies which are likely to be resilient throughout market ups and downs. However, when bear markets set in across the world, all indices suffer and the NYSE Composite Index will not be immune to this.

How do I invest in the NYSE Composite Index?

If you want to invest in the NYSE Composite Index, follow these three important steps:

  1. Choose an investment type
  2. Use our top tips to succeed
  3. Choose a platform to invest with

1. Choose investment type

Different investment types each have their pros and cons. The one you choose could depend on multiple factors, such as how much a platform charges in transaction fees, and the quality and quantity of investment advice you’re seeking. Here’s a look at the methods you can use to invest in the NYSE Composite Index:

ETFs

An ETF (exchange-traded fund) is an investment fund traded on a stock exchange during regular stock market hours – something not offered by other investment products. ETFs consist of a collection of assets such as bonds or commodities, or a collection of stocks such as the stocks you’ll find in the NYSE Composite Index. By following the performance of 2,000 stocks at once, an NYSE ETF gives you the benefit of diversification, without the high fees that come with some other methods.

Individual stocks

If you’re aiming for bigger gains, you can try owning only the top stocks in the NYSE Composite Index. To do that, though, it’s likely you’ll need to buy a huge number of stocks one at a time, then pare down your holdings until you have a smaller batch of the best performers. This approach is generally not advised for indices as varied as the NYSE Composite however, as buying even a small portion of the index’s 2,000 stocks will eat up a lot of time and cost a large amount in transaction fees.

Mutual funds

A mutual fund is an investment fund that’s run by a professional money manager and can be bought either through a broker, or the company that administers the fund. The money manager pools capital from many different investors, then invests it into different assets. A NYSE fund (also called an index fund) allows you to invest in all of the NYSE Composite Index’s stocks at once. 

Mutual NYSE funds do have a few drawbacks. One is that you can only buy a mutual fund at the end of the stock market’s trading day, not during regular market trading hours. Also, mutual funds charge higher fees than NYSE ETFs do. So if you’re going to invest in a NYSE funds, consider a buy-and-hold approach that avoids frequent transactions, given the cost and relative complexity of this kind of investment.

2. Use our top tips to be a successful investor

Before you invest in the NYSE Composite Index, check out Invezz’s top investment tips:

  • Do your research. Start by studying the NYSE Composite Index’s recent and historical performance, as well as how the index compares to other investments. After that, plot out the types of gains you’re hoping to achieve in a set time frame, as well as the size of the losses you’re emotionally and financially equipped to handle. The more prepared you are coming into an investment, the more able you’ll be to cope with emotions such as fear and greed that can cloud your judgment under pressure.
  • Set a budget. Consider both your risk tolerance and the amount of money you can afford to lose. One way to manage risk is to set a stop-loss order after you make your investment, so that you can limit the size of your potential losses. If you let your losses escalate, you could damage both your confidence and your ability to afford future trades. Setting a budget will help make sure you stay in the game even when markets are being uncooperative.
  • Select the right platform. Pick an investing platform based on your specific investment goals. If all you care about is getting the lowest transaction fees, that’s a very different approach than if you want to benefit from personal investment advice. It’s vital that you figure out your goals before you look for a platform to handle your investments. 
  • Grow your investments gradually. If you’re just starting off as an investor, consider starting slowly by investing just a small amount of money at first. As you gain experience and expertise, you can try a more complex investment approach and stake more of your capital.
  • Think long-term. If you’re trying to land the biggest possible gains, buying and holding the NYSE Composite Index long-term could be a fruitful plan. However, even if engaging in short-term NYSE trading, you should always keep an eye on the bigger picture and the likely future movement of the market. 

3. Choose a platform to invest with

Here’s a rundown of the options you can use to invest in the NYSE Composite Index:

  • Brokers & NYSE trading platforms. Online brokers offer easy-to-use tools that make for a seamless trading experience (even for beginners looking into NYSE trading), with low transaction fees to boot. What you gain in affordable transaction costs you lose in customer service, though. Most online brokers don’t provide in-depth investment advice that some investors might want. If you’re looking for higher-level investment guidance, you should consider other options.
  • Robo advisors. Robo advisors use algorithms to execute trades. Though the trade execution process is automated, some robo advisors will still allow you to discuss your investment strategy with a human being in order to create a personalised approach. Combined with relatively low NYSE trading fees, that makes for an attractive investing option for many people. Just keep in mind that robo advisors don’t usually offer the same level of investment guidance that a top financial advisor does.
  • Financial advisors. Financial advisors provide the highest level of advice that you’ll find among any of these investment options. Your financial advisor will review your financial goals, explain different investment options, then help you stay on track long after you’ve made your first trade. All of that customer service naturally comes with a higher price tag. That extra cost can sometimes be worth it, but it is unlikely to be worth itin this case, because investing in the NYSE Composite Index is a pretty simple process.
  • Banks. Investing in the NYSE Composite Index with your bank gives you the convenience of housing all of your financial ventures with one institution. On the downside, banks tend to charge high fees, without providing the level of service that dedicated financial advisors offer. That means you’re usually better off trying a different approach unless convenience is your top priority.
Nadex
Key Features
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Min Deposit
$250
United States
Start Trading View key features
Key Features
CFTC Regulated exchange based in the US
Trade around the clock, how you want, when you want
100% defined risk trades on Forex, Stock Index Futures and Commodities underlying markets
Key Stocks
Payment Methods
ACH, Debit Card, Wire Transfer
Nadex is the first, and largest, CFTC regulated exchange designed for the individual trader. Nadex offers around the clock trading on Forex, Stock Index Futures and Commodities. Nadex offers three unique contract types: Binary Options, Touch Brackets and Call Spreads giving traders the ability to trade how they want, when they want.
FOREX.com
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Min Deposit
$50
United States
Start Trading View key features
Key Features
Access over 220 of the most popular company shares
Trade on spreads from 1 pt on UK shares
Go long or short on global top companies
Key Stocks
Payment Methods
Debit Card, Bank Wire, ACH, Credit Card, PayPal
Founded in 1999, part of GAIN Capital Holdings. Licensed in highly regulated jurisdictions, FCA, IIROC, NFA, CFTC, CIMA,FSA. Payment methods ACH, debit card, bank wire transfer. $50 minimum deposit.
IG Markets
Key Features
Low-cost UK shares Invest from just £5 per trade
Huge choice of investments - Invest in over 12,000 shares
Expert service provided
Min Deposit
$500
United States
Start Trading View key features
Key Features
Low-cost UK shares Invest from just £5 per trade
Huge choice of investments - Invest in over 12,000 shares
Expert service provided
Key Stocks
Payment Methods
Credit Card, Debit Card, Bank Transfer, PayPal
The world-leading online trading and investments provider giving clients access to opportunities across thousands of financial markets through our intuitive platforms and apps.

What should I do now? 

If you’re ready to invest in the NYSE Composite Index, just log into your chosen platform’s website, decide the specific type of investment you want to make, then click buy. Keep tabs on your investment after that, so you can be ready to change gears if the market becomes volatile and unstable.

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Written by: Harry Atkins
Harry joined us in 2019 to lead our Editorial Team. Drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience in the finance sector encompasses work for high street and investment banks, insurance companies and trading platforms.