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The index yield to maturity (YTM) can be calculated either by weighting the average yield of the constituents by value weights or by duration weights. The yield to maturity is equivalent to the internal rate of return (IRR) more commonly used in unlisted equity. It is a forward looking measure of expected returns amongst the index constituents. It can be computed as a simple weighted average of the constituents' yield to maturities or weighted by both value and duration.
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\text{Y}_{t} = EP_{t} + \frac{\sum \limits_{i=1}^n r_{t,t+i}}{n} 
where,
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Durationweighted
The durationweighted YTM of the index gives a better approximation of the true yield of the index if the durations of the individual index constituents are very different from one another.
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