Beurseindex

Beurseindex is a statistical measure used to track the performance of a defined group of securities listed on a securities exchange. It serves as a benchmark for investors and investment funds and as a concise indicator of market or sector performance. Beurseindices can cover the entire market or focus on specific segments, such as sectors, industries, or company sizes (for example small-cap or mid-cap equities).

Calculation and structure are central to beurseindices. Most indices are calculated as weighted averages of their constituents, with common approaches including price weighting, market-cap weighting, or equal weighting. An index has a base date and a base value, and its current level reflects changes relative to that base. Indices may be price indices, which track only price movements, or total return indices, which include reinvested dividends. They also adjust for corporate actions like stock splits or dividends to preserve continuity, often via a divisor or similar adjustment mechanism. Rebalancing rules determine how often constituents are added or removed.

Use and significance are broad. Beurseindices summarize market trends, aid in performance measurement, and underlie passive investment products such as index funds and exchange-traded funds. They provide a simple, transparent target for benchmarking portfolios and evaluating active management.

Examples and context may vary by market. In many countries, flagship beurseindices represent the broad market, while secondary indices cover subsegments such as mid-cap or sector groups. While diverse in construction, all beurseindices share the goal of distilling complex market movements into a single, interpretable number.