Capital Growth

Capital growth, or indirect return, measures the change in asset's value over a period of time relative to the initial value. The index-level capital growth is calculated as the weighted average using the market value of each constituent.

$$//<![CDATA[ \begin{array}{l}\displaystyle \text{Capital growth}_{t} = \sum\limits_{i=1}^{n} (w_{i,t-1} \times \frac{V_{i,t,RepCCY}}{V_{i,t-1,RepCCY}} - 1)\end{array} //]]>$$

where:

$//<![CDATA[ \begin{array}{l}V_{i,t,RepCCY}\end{array} //]]>$ and  $//<![CDATA[ \begin{array}{l}V_{i,t-1,RepCCY}\end{array} //]]>$ denote constituent i's fair value estimates at times t and t-1 respectively.
$//<![CDATA[ \begin{array}{l}w_{i,t-1}\end{array} //]]>$ denotes the weight of constituent i at time t-1.