Fidelity Select Fundranker

Fundranker Blog—Stock Indexes vs. Total Return

Stock Indexes vs. Total Return

We see the S&P 500 and Nasdaq Composite Indexes on financial news every day, but did you know that they are calculated solely from the prices of their underlying stocks, do not include dividends, and thus do not show total return? That’s why we track Fidelity’s Spartan 500 Index Fund - Investor Class and Nasdaq Composite Index Fund to compare to Fidelity Select Fundranker’s Top Eight Model Portfolio. That way, we can include dividends on both of those hypothetical tracking portfolios as well as our Top Eight Model Portfolio.

Now, let’s move to the financial news that you have not been seeing or hearing the last few months: The S&P 500 Index set a new all-time high on a total return basis on August 16, 2012, and it set several more all-time highs since then, most recently, as this blog entry is posted, on January 22, 2013. Get current quotes for symbol XX:SPXT at MarketWatch, or get historical quotes for symbol SPXT at BigCharts, a service of MarketWatch. MarketWatch started tracking this S&P 500 Total Return Index on March 30, 2009.

On a total return basis, the Nasdaq Composite Index surpassed the high it set in October, 2007, at the end of the previous bull market, over a year ago, on January 18, 2012. It also set numerous new highs since then, most recently on September 14, 2012. It has a long way to go, though, to reach the all-time highs it set back in 2000. Get current quotes for symbol XX:XCMP at MarketWatch, or get historical quotes for symbol XCMP at BigCharts. MarketWatch started tracking this Nasdaq Composite Total Return Index on September 21, 2009.

Posted 1/23/13 12:14pm ET in Market