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.

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.

References in periodicals archive ?
The Index products included two MSCI India index contracts, the first -- a price return index that takes into account the price performance of the 67 constituent stocks in local currency (Indian Rupee) and the second a total return index taking into account both the price performance and the dividend payments, calculated in US Dollar terms.
The total return index is commonly used as a benchmark in proxy statements.
During its life, the WMA Balanced Total Return index has returned compound annual growth of 8.
The S&P 500 Total Return Index finished the quarter up 2.
FUND: Greenhaven Continuous Commodity Index Fund (GCC) GCC follows the Thomson Reuters Equal Weight Continuous Commodity Total Return Index (CCI-TR), which owns commodity futures contracts on agriculture, energy, metals and softs.
The Standard and Poor's GSCI Total Return Index of 24 commodities rose 0.
An investor using a total return index sees a more accurate indication of an index's actual investment return: price change plus reinvested dividends.
The FTSE All-Share Total Return Index actually rose by 22 per cent during 2005.
Whereas the basic TSE 300 Composite measures just the increase in stock prices, the Total Return Index includes both stock price increases and the dividends earned on the stocks in the Index.
On Friday October 26th, the RBS Oil Trendpilot(TM) Index (the "Index") had its 5thconsecutive negative trend and as a result it was scheduled to switch from the RBS 12 Month Oil Total Return Index to the Cash Rate effective at the open of trading on the second immediate index business day following the 5th consecutive negative trend.
The total return for the first half of the year 2017 amounted to 22 % for the Class A shares as well as for the Class C shares, compared with 11 % for the total return index (SIXRX).
97 percent net of all fees and expenses, beating by 73 percent its benchmark S&P 500 Total Return Index which returned 11.