Index Investing

Total-Return Index

Definition

What is Total-Return Index?

An index measuring price changes plus reinvested distributions.

Example in practice

A total-return index exceeds its price index when constituents pay dividends.

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A statistical measure tracking the performance of a defined group of securities or assets.

An index designed to measure a market or market segment.

An index covering a large portion of an investable market.

An approach targeting broad, persistent return drivers such as value, size, momentum, quality, or low volatility.

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