All Ordinaries Index

The **All Ordinaries Index** is an Australian share-price index designed to measure the performance of the 500 largest companies in the Australian equity market, drawn from eligible companies listed on the Australian Securities Exchange. It is commonly known as the “All Ords” and is used as a broad market indicator for Australian listed equities.^[1]

Overview

The All Ordinaries Index, ticker **XAO**, is one of the best-known measures of Australian share-market performance. S&P Dow Jones Indices describes it as an index designed to measure the 500 largest companies in the Australian equities market, drawn from eligible companies listed on the ASX.^[1] ASX describes the index as “Australia’s premier market indicator” and states that it represents the 500 largest companies listed on the exchange.^[3]

The index belongs to the broader S&P/ASX Australian index family, which includes large-cap, mid-cap, small-cap, sector and style measures of the Australian equity market. Within that family, the All Ordinaries differs from the more investable institutional benchmarks because it is constructed primarily around company size rather than tradability. The S&P/ASX 200 Index, for example, is described by S&P Dow Jones Indices as measuring the 200 largest index-eligible ASX-listed stocks by float-adjusted market capitalisation and as a representative, liquid and tradable benchmark.^[5]

The All Ordinaries is a price index: its level reflects changes in the prices of constituent securities, not the full value of dividends paid by those companies. Variants and related series may exist for total-return or accumulation analysis, but the headline All Ordinaries figure used in market reporting is normally the price index. ASX’s historical market statistics publish a monthly “All Ords price index” alongside the S&P/ASX 200 price index and domestic equity market capitalisation figures.^[4]

Construction and eligibility

The All Ordinaries is built from eligible companies listed on the ASX. S&P Dow Jones Indices states that it measures the 500 largest companies in the Australian equities market and that liquidity is not considered as a criterion for inclusion.^[1] ASX similarly states that market capitalisation is the only eligibility requirement of constituents, because liquidity is not considered, except in relation to foreign-domiciled companies.^[3]

In the S&P/ASX Australian Indices Methodology overview, S&P Dow Jones Indices states that the All Ordinaries is composed of the 500 largest securities listed on the ASX, has no liquidity screen and has no minimum investable weight factor requirement.^[2] This distinguishes it from many other S&P/ASX indices, which typically use float-adjusted market capitalisation and liquidity tests as part of their eligibility framework.

The methodology overview also states that the All Ordinaries is the only member of the S&P/ASX index family that is **not weighted by float-adjusted market capitalisation**.^[2] In practice, this means the index is constructed differently from indices such as the S&P/ASX 50, S&P/ASX 100, S&P/ASX 200 and S&P/ASX 300, which are described in the methodology overview as measuring stocks by float-adjusted market capitalisation.^[2]

A market-capitalisation-weighted index gives larger companies a greater effect on index movements than smaller companies. Therefore, although the All Ordinaries contains 500 companies, its day-to-day movements can be heavily influenced by the largest constituents. In Australia, these typically include major banks, large diversified miners, healthcare companies, retailers, infrastructure groups and other large listed entities. The index is broad in constituent count, but it is not an equal-weighted measure of the average performance of every listed company.

Relationship with the ASX and S&P Dow Jones Indices

The All Ordinaries is associated with the Australian Securities Exchange because its constituents are drawn from ASX-listed companies and because it is widely used in Australian market reporting. However, the index is administered within the S&P/ASX index framework by S&P Dow Jones Indices. S&P Dow Jones Indices publishes the index description, data, documents and methodology materials for the All Ordinaries.^[1]

ASX provides educational and market-statistics material about the index and links users to S&P Dow Jones Indices for the index page. ASX’s capitalisation-indices page places the All Ordinaries alongside other Australian equity measures, including the S&P/ASX 100, S&P/ASX 200, S&P/ASX 300 and S&P/ASX Small Ordinaries.^[3]

The relationship between ASX and S&P Dow Jones Indices is important for understanding Australian equity-market benchmarks. ASX operates Australia’s main securities exchange infrastructure, while S&P Dow Jones Indices maintains the rules, calculations and index products in the S&P/ASX family. For users of market data, the All Ordinaries sits at the intersection of exchange-listed securities and benchmark construction.

Comparison with the S&P/ASX 200

The All Ordinaries is broader by constituent count than the S&P/ASX 200 Index, but it is not necessarily the primary benchmark for institutional investment management. S&P Dow Jones Indices describes the S&P/ASX 200 as the institutional investable benchmark in Australia and says it is designed to measure the performance of the 200 largest index-eligible ASX-listed stocks by float-adjusted market capitalisation.^[5]

ASX describes the S&P/ASX 200 as the recognised investable benchmark for the Australian equity market, intended to meet the needs of investment managers seeking a portfolio characterised by sufficient size and liquidity.^[3] By contrast, ASX describes the All Ordinaries as a premier market indicator representing the 500 largest companies, with market capitalisation as the key eligibility basis and no liquidity consideration other than the stated exception for foreign-domiciled companies.^[3]

The distinction matters. A benchmark intended to be investable typically aims to include securities that can be traded in meaningful volumes by large portfolios. A broad market indicator may provide a wider picture of listed-market direction but may include companies with lower liquidity than those commonly used in institutional products. Consequently, the S&P/ASX 200 is often used as a benchmark for Australian equity funds and institutional mandates, while the All Ordinaries is often used as a general barometer of overall market conditions.

The S&P/ASX 300 sits between these concepts. ASX says the S&P/ASX 300 provides additional depth and coverage to the S&P/ASX 200 while maintaining strict liquidity guidelines.^[3] The S&P/ASX Small Ordinaries is composed of companies in the S&P/ASX 300 that are not in the S&P/ASX 100, and is used as a benchmark for small-cap investments.^[3] The All Ordinaries, by contrast, reaches to 500 companies and does not use the same liquidity-based framing.

Market use

The All Ordinaries is used as a headline indicator of Australian share-market direction. Media reports, market summaries and historical tables may cite its level to describe whether the Australian equity market rose or fell. Because it includes a broad range of large, mid-sized and smaller listed companies, it can indicate general market trends beyond the largest 200 stocks.

The index is also useful for historical context. ASX publishes historical market statistics that include monthly All Ords price-index levels, S&P/ASX 200 price-index levels and total end-of-month or domestic equity-market capitalisation values.^[4] These data allow analysts to compare the index’s movement over time with changes in broader listed-market capitalisation.

For example, ASX’s historical statistics table shows recent monthly All Ords price-index readings alongside S&P/ASX 200 readings and domestic market capitalisation. The same table records earlier levels for previous years, enabling comparisons across market cycles.^[4] Such statistics are descriptive and do not indicate future performance.

The All Ordinaries may also serve as a reference point for academic analysis, economic commentary and financial education. Because it is older and broader than the S&P/ASX 200, it is sometimes used in long-run discussions of Australian equity-market history. However, for investable funds, exchange-traded funds and performance benchmarking, market participants often use other indices that have explicit liquidity and float-adjustment characteristics.

Sector and company concentration

The All Ordinaries contains 500 companies, but its market-capitalisation weighting means that the largest companies can dominate returns. This is a common characteristic of capitalisation-weighted equity indices. A movement in a large bank or major mining company can have a greater effect on the index than similar percentage movements in many smaller constituents.

Australia’s listed equity market has historically had significant representation from financial companies, mining and resources companies, healthcare, consumer businesses, infrastructure and real estate-related issuers. The precise sector weights of the All Ordinaries change as share prices, corporate actions and index membership change. Because the index is based on listed companies and market capitalisation, it reflects the structure of the Australian public equity market rather than the structure of the entire Australian economy.

This distinction is important for interpretation. The index is not a direct measure of gross domestic product, household income, employment, inflation or the Australian dollar. It is a securities-market measure. Its level can be affected by earnings expectations, interest rates, commodity prices, global equity sentiment, currency movements and company-specific news. It can also diverge from domestic economic indicators when large internationally exposed companies account for a significant share of index value.

Calculation and index level interpretation

Like other equity price indices, the All Ordinaries is reported in index points. A point level is not an amount of money invested or a percentage return by itself. Its meaning is derived from changes over time. If the index rises from 8,000 to 8,400, that is a 5% increase in the price-index level. If it falls from 8,400 to 7,980, that is a 5% decline from the starting level.

Because the headline All Ordinaries is a price index, it does not by itself show the full return received by a shareholder who reinvests dividends. Australian companies often pay dividends, and dividend treatment can materially affect long-run return comparisons. For total-return analysis, users generally need an accumulation or total-return index series rather than the headline price index.

Index levels are also affected by corporate actions such as share issues, capital returns, demergers and mergers. Index providers use published methodologies to adjust calculations so that the index is intended to measure market-price performance rather than mechanical changes caused by corporate actions. The detailed rules are contained in S&P Dow Jones Indices’ S&P/ASX Australian Indices methodology materials.^[2]

Role in Australian finance

The All Ordinaries has a long-standing place in Australian finance as a broad indicator of the share market. It is less specialised than sector indices and broader than large-cap benchmarks. It therefore provides a simple reference point for market commentary, particularly when the question is whether Australian listed shares as a broad group moved higher or lower.

Its relevance also reflects the importance of listed equities in Australia’s financial system. Australian households often have exposure to listed equities directly, through managed funds, through exchange-traded funds, and through superannuation accounts. While many of these vehicles benchmark to other indices, the All Ordinaries remains a widely recognised measure for public communication about share-market conditions.

Regulators and public institutions do not use the All Ordinaries as a policy target. The Reserve Bank of Australia may monitor equity-market conditions as part of broader financial and economic analysis, and Australian Securities and Investments Commission regulates aspects of market conduct and financial products. The index itself, however, is a market benchmark rather than a regulatory instrument.

Limitations

The All Ordinaries has several limitations as a market measure. First, because it is capitalisation weighted, it is more sensitive to the largest companies than to the median constituent. A broad constituent count does not mean that each company contributes equally to performance.

Second, because the headline index is a price index, it excludes the compounding effect of reinvested dividends. This can make it less suitable for long-run total-return analysis unless paired with an appropriate accumulation or total-return series.

Third, the index covers listed equities only. It does not include unlisted companies, private equity, bonds, property held outside listed vehicles, bank deposits, commodities or direct holdings in infrastructure assets. It therefore represents only one segment of Australian capital markets.

Fourth, the absence of a general liquidity screen means the index is not necessarily a direct template for large investable portfolios. S&P Dow Jones Indices and ASX both distinguish the All Ordinaries from indices such as the S&P/ASX 200, which is explicitly framed around size, liquidity and tradability.^[3][5]

See also

- Australian Securities Exchange - S&P/ASX 200 Index - Reserve Bank of Australia - Australian Securities and Investments Commission - Superannuation - Exchange-Traded Fund