TEDPIX vs Equal-Weight

An index measures a defined basket using a published weighting and return method. A size-weighted index gives larger constituents more influence; an equal-weighted index periodically gives members equal target weights. A price index excludes dividends, while a total-return index includes their treatment under its methodology. TEDPIX is the Tehran price-and-dividend index. Do not compare it directly with a foreign price-only index or assume the equal-weighted Tehran series has the same return convention. Check methodology, base date, membership changes and currency before drawing conclusions.

Worked example (hypothetical)

Two stocks have weights 80% and 20% and returns +10% and −10%. Their size-weighted basket gains 6%; an equally weighted basket gains 0%, before dividends, rebalancing and costs.

Check your understanding

Can a rising index mean most constituents fell? Yes, if the rising members have enough weight. Look at breadth and the weighting method alongside the index.

Sources, reviewed 5 October 2026

• Methodology Matters