# Index annual compound rate of return



## ROE (16 February 2011)

Anyone know where I can go about getting
the Compound annual rate of return for the ASX index in the last decade?


Thanks


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## skc (16 February 2011)

ROE said:


> Anyone know where I can go about getting
> the Compound annual rate of return for the ASX index in the last decade?
> 
> 
> Thanks




Do you mean the accumulation index (XJOAI)? I think that re-invest all dividends.

Or do you mean re-invest all the gains? That would just be the index itself...

Say XJO in Year 2000 = 3000 pts. In 2011 = 5000. CAGR = 4.7%


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## Michael Cornips (16 February 2011)

ROE said:


> Anyone know where I can go about getting
> the Compound annual rate of return for the ASX index in the last decade?
> 
> 
> Thanks




ROE
The best way to calculate the compound return of the ASX 200 is to use the accumulation index that includes re-invested dividends.
On 31st Dec 2000 the index was 15404, and finishing on 31st Jan 2011 @ 34,582.

So the compounded annual return since 31st Dec 2000 is 7.57%.

Here is a graph - 
cheers


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## Michael Cornips (17 February 2011)

skc said:


> Do you mean the accumulation index (XJOAI)? I think that re-invest all dividends.
> 
> Or do you mean re-invest all the gains? That would just be the index itself...
> 
> Say XJO in Year 2000 = 3000 pts. In 2011 = 5000. CAGR = 4.7%




I used XJOAI


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## ROE (17 February 2011)

Cool thanks for all the infor


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## ROE (20 February 2011)

I found these  all the information I ever needed

http://www.standardandpoors.com/indices/main/en/us/ 
(Cover Most index around the world)

http://www.standardandpoors.com/ind...ries/en/us/?indexId=spaustaordaudto--p-au----  (Aussies All Ordinaries)


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## Michael Cornips (22 February 2011)

ROE said:


> I found these  all the information I ever needed
> 
> http://www.standardandpoors.com/indices/main/en/us/
> (Cover Most index around the world)
> ...




Out of interest I checked whether investing in the ETF STW.asx (S&P 200 index) since its launch in 2001 replicated in real life the accumulation index.
Buying 10,000 STW in August 2001 with dividend re-investment gives you 14,500 shares today. 

10,000 STW cost $328,300 which is worth $670,770 today.

The accumulation index suggests it should be worth $731,000.

Interesting tracking error. The STW management fee should only make a 3% difference over 10 years.


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