All books

Professional

Apps About Coach Log in Start reading

Quantitative Finance · Glossary

What is Pro-forma index?

Definition 15.4 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 15 — Index Construction and Rebalancing

A pro-forma index is the index as it will stand after a coming review, members and share counts, distributed by the provider to its clients between the announcement and the effective date so that trackers can prepare their trades.

The June 2026 reconstitution of a rules-based index family (dates from the dated box). Prices after the rank day do not change the membership; they change only how much the trackers will have to buy.
Figure 15.1. The June 2026 reconstitution of a rules-based index family (dates from the dated box). Prices after the rank day do not change the membership; they change only how much the trackers will have to buy.
Read in context →