Global & Regional Equity Indices

Equity indices can cover a country, exchange, sector or selected large companies. Inclusion and weighting rules define what each measures. A float-adjusted market-cap index and an equal-weighted index are not interchangeable. S&P 500, Saudi and Turkish benchmark families also use their own methods and currencies; matching the word “index” is insufficient for comparison with Tehran. Use the same return convention, period and reporting currency. A headline index does not represent every household asset or every company in the economy.

Worked example (hypothetical)

One index reports a 7% price gain and 2% dividends under a simplified same-period assumption; its approximate total return is 9%. Comparing that with another index’s 7% total return changes the conclusion. Actual reinvestment uses the published methodology.

Check your understanding

Can an index’s currency be ignored? No. Report local and converted returns separately when they answer different questions.

Sources, reviewed 5 October 2026

• Methodology Matters