There is a wide variation around the index return which at the tail can be devastating.
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The "index return" includes dividends, but it's split out, quarter by quarter.
The other party to the swap would receive the same cash flows in reverse, pay the quarterly index return and receive LIBOR plus the spread.
According to Rothstein Kass in a recent study, an index of women-led funds produced a net return of 9%, compared to a global index return of a mere 3%.
With this sequence of bets you'll (a) be exposed to market losses to the extent of the money you paid for the trade, (b) get triple the index return up to 15%, (c) give up any gains above 15%.
The Bombay Stock Exchange SENSEX India Index has return nearly 20% in the last five years.
One of the best ways to trade copper prices besides futures contracts is the iPath Dow Jones-UBS Copper Sub-Index Total Return ETN ( JJC).
The Lipper Emerging Markets Fund index average return was 20.08 percent.
And why fear the US level but not the global? (The MSCI World index total return is just 4.7% from its past high.) Or vice versa?
The PowerShares DB Agriculture Fund ( DBA) is based on the DBIQ Diversified Agriculture Index Excess Return, which tries to duplicate the performance of the entire agriculture sector.
The Absolute Return Distressed Index has produced a median return of 10.58% through October.
Over the next three years, the total return of the high yield index exceeded the total return on investment grade corporate bonds by 1.71 percentage points per annum.
It starts with a financial plan and is driven by your family index rate of return.
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Result: Orbis Global's portfolio usually looks nothing like its benchmark, the FTSE World Total Return index.
The average 18-mo return for the Emerging Total Return Index (price index including dividends) is 22.4%.
In 2012, our Billionaires Index generated a return of only 12.3%.
Aside from the Dow being price-weighted and therefore near useless as a market barometer the DJIA total return index has also long been above its prior high.
For example, for the 18-mo period ending July 2001the MSCI Emerging Total Return Index was -36.4%, MSCI Emerging Price Index was -38.6%, and the structured note therefore was -28.6%.
The expectation that an index fund will get EXACTLY the return of the target index sets the stage for an interesting problem: Zero tracking error is achievable, but it comes at a very high price.
Real estate derivatives are a way for investors to gain exposure to the asset class without the need to buy or sell properties by replacing the exposure of the real property to the performance of a real estate return index.
Two others have exposure to oil futures: iPath Goldman Sachs (nyse: GS - news - people ) Crude Oil Total Return Index Exchange Traded Note and PowerShares Deutsche Bank (nyse: DB - news - people ) Oil Fund.
The rate of return on American index-linked government securities (also a real return) is roughly 4%.
On a total return basis, the index has already provided investors with a positive return since the previous peak.
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In the case of an investor going long the total return of the NCREIF index, he or she would accept the total return on the NPI (paid quarterly) on a predetermined notional amount and agree to pay the LIBOR rate, plus a spread on the same notional amount.
There were 131 up days for the index, averaging a return of 0.60% on those days.
In 2010, shares of smaller companies in the Russell 2000 Index produced a total return of 26.9%.
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Understand that the performance for Morgan's index is a total return, net of all expropriations and currency crises.
The index has an average return of 23% when the Packers win.
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It comes from The Shift Index which says that return on assets employed by large US quoted companies now stands at 25% of their 1965 levels.
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The average return over that period for the Barclays Municipal Index was 5.855% (total return), with price contributing 0.964% and coupon contributing 4.945%.
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