All Ordinaries (ASX: XAO).Index
The All Ordinaries stock index is market-weighted and includes about 500 companies. The index began in 1980 and is also well known in an abbreviated form as "All Ords." It is one of the most primitive indexes of shares in Australia. It is well-regarded as a total market barometer for the ASX market. The index comprises the 500 largest ASX companies and accounts for 87% of Australia's total equity market as of September 2023. It has a symbolic 3-letter exchange ticker denoted as "XAO."
The company must satisfy all the relevant requirements established by the ASX. To be inserted in the All-Ordinaries index, a company must have a market value of at least 0.2% of all domestic equities quoted on the ASX and must maintain an average turnover on the Australian exchange of at least 0.5% of its quoted shares per month.
The dividend status of All Ordinaries
The ‘All Ords’ does not take into consideration a dividend that a company distributes to their shareholders, and therefore, it is not a complete reflection of investors’ returns.
However, the All Ordinaries Total Return Index (XAOA) considers all cash dividends reinvested on the ex-dividend date, excluding franking credits, and is sometimes used as a barometer for the total investor performance of the top 250 companies by market capitalization listed on the ASX. The All Ordinaries Total Return Index was earlier known as the ‘All Ordinaries Accumulation Index’. This accumulation index is typically only used as a comparison tool for long-term investment returns and is therefore not widely quoted on a daily basis.
Sectoral Market Weight Percentage
Table: Calculations derived from the market capitalization of ‘All Ords’
Source: Veye Pty Limited
Frequently Asked Questions (F.A.Q)
What is the All Ordinaries Index?
The All Ordinaries stock index is market-weighted and comprised of 500 companies from various sectors. It is also well known in an abbreviated form as "All Ords." It is one of the most primitive indexes of shares in Australia and is well-regarded as a total market barometer for the ASX market.
Does the index consider dividends?
The ‘All Ords’ does not take into consideration a dividend that a company distributes to their shareholders, and therefore, it is not a complete reflection of investors’ returns.
How do the stocks contained in the index influence the All Ords?
Companies from various sectors, from retail to resources and technology to healthcare, contribute to the index variations. The financial results and individual companies' strategic roles reflect in their share prices, influencing the overall direction of the All Ords.
Is there any exchange traded fund (ETFs)?
There are no related ETFs. The closest alternative is an ASX 300 ETF.
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