Just curious about the total return index for stock such as S&P 500 TR, is the index typically adjusted for tax on dividend when accounting for calculation on the total return index?

  • 2
    $\begingroup$ I would assume they are not as the taxation would depend on which country you are based. $\endgroup$
    – phdstudent
    Jul 28, 2019 at 13:33
  • $\begingroup$ @phdstudent Thanks for the help. $\endgroup$
    – user506602
    Jul 28, 2019 at 13:36
  • $\begingroup$ You must carefully read the documentation for the TR index. Some MSCI indexes for ex. deduct dividend withholding tax in countries where such a withholding is law. $\endgroup$
    – nbbo2
    Jul 28, 2019 at 16:12
  • $\begingroup$ @noob2 Thanks for the suggestion. $\endgroup$
    – user506602
    Jul 28, 2019 at 16:16

1 Answer 1


In the U.S., the convention is not to consider taxes in total return stock indices such as the S&P 500.

The reason why this is traditionally done this way is that much of the buy-side are various kinds of pension funds who don't need to think about taxes.

Someone who does need to think about taxes just has more moving parts to worry about.


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