Question
How are market indices selected?
Answer
Measuring returns in isolation has limited meaning unless the value can be compared against something relevant. To be meaningful, the time-weighted return (not IRR) should be judged against an appropriate comparative benchmark with a historical perspective.
Indexes can be calculated without dividends/income (price index) or with income (total return index). Performance should always be measured against a total return index.
You have the ability to narrow the benchmark results displayed. The market indices box allows you to select from all available benchmarks. Highlight the benchmarks you would like included in your results. The display will automatically refresh, presenting the requested information.