Market indices: reading the benchmark

An index describes a rules-based selection of securities. It provides a reference for a market or strategy, but its composition and weighting determine what it actually measures.

What to look for

Price-return indices generally omit reinvested distributions, while total-return versions include them under the index methodology. Compare like with like, and check rebalancing and constituent rules.

Market coverage and data availability vary by instrument and exchange. This article is educational and does not constitute investment advice.