Total return index

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Total Return Index

An index of stocks that assumes that all dividends are reinvested in the stocks issuing them. Thus, a total return index is effectively weighted according to how often dividends are distributed and how much they are worth. It is important to note that a total return index is only a statistical calculation and that not all dividends of stocks represented in the index are actually reinvested.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Total return index.

A total return index is an equity market index that's calculated using the assumption that all the dividends that the stocks in the index pay are reinvested in the index as a whole.

Since an index is not an investment, but a statistical computation, the re-investment occurs only on paper, or, more precisely, in a software program.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
The S&P 500 and DJIA total return indices were off five per cent and seven per cent ytd, respectively.
The indices are calculated as Total Return indices and are reviewed monthly.
Both the QE and the Total Return indices will continue to have Industries Qatar, QNB, Masraf Al Rayan, Ooredoo, Qatar Islamic Bank, Commercialbank, Barwa Real Estate, Qatar Electricity and Water, Nakilat, Doha Bank, Milaha, International Islamic, al khaliji, United Development Company, Gulf International Services, Vodafone Qatar, Qatari Investors Group, Alijarah Holding, Mazaya Qatar and Widam (Mawashi).