What is The All Ordinaries Index?
The All Ordinaries Index (XAO)
The All Ordinaries, or as it is commonly referred to as the ‘All Ords’, is the oldest share index in Australia. It tracks the performance of the top 500 companies listed on the ASX, based upon their market capitalisation.
The market capitalisation or market cap value of a company is calculated by multiplying the total number of issued shares by the share price.
The ‘All Ords’ as an index is often used to gauge the overall performance of the Australian stock market. The 500 companies included in the index make up close to 90% of the ASX’s total value.
The ASX 200
The ASX 200, as the name suggests, tracks the performance of the top 200 companies listed on the ASX, based upon their market capitalisation. Alongside the All Ordinaries Index it is considered one of the benchmark share indexes of the Australian market.
The All Ordinaries Total Return Index (XAOA)
Aside from ranking a different number of companies, the XAOAalso considers the dividends companies pay to their shareholders. Because of this additional feature it provides a more complete reflection of what the investor returns.
Whilst the ‘All Ords’ does not take into account dividend returns, the XAOA does. The XAOA, gauges all cash dividends reinvested on the ex-dividend date (excluding franking credits).
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