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BREAKING DOWN 'Total Return Index'
A total return index may be deemed more accurate than other methods that do not account for the activity associated with dividends or distributions, such as those that focus purely on the annual yield. For example, an investment may show an annual yield of 4% along with an increase in share price of 6%. While the yield is only a partial reflection of the growth experienced, the total return includes both yields and the increased value of the shares to show a growth of 10%. If the same index experienced a 4% loss instead of a 6% gain in share price, the total return would show as 0%.
Read more: Total Return Index Definition | Investopedia http://www.investopedia.com/terms/t/total_return_index.asp#ixzz4RbrZsL6O
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