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Author: Dwdonhoff Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76084  
Subject: Re: Retirement, college, and Obamanomics Date: 1/1/2013 4:46 PM
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They don't all exclude dividends.

Technically, *NONE* of them exclude dividends, as the aggregate dividend yield is baked into the costs of the options used to hedge the trade... so the dividend is paid for (just as when buying the underlying security) and reflected in the ultimate performance (just as when buying the underlying security.)

But that's wayyy inside baseball, and far more complicated than needs to be understood. (Certainly more complicated than apparently some are capable of understanding ;~)

"The market index" could just as well be a random snail trail back & forth across a post-rain sidewalk. What matters is the bottom line results, which (on a risk, cost & tax weighted basis) outperforms the alternatives in the majority of markets for the majority of users.

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