Charting and Performance Question?

[HnE]

I have a basic question.  When you look at a chart of the S&P index historical performance (for example at yahoo finance), how are dividends handled?  In calculating long term performance, are they reinvested or simply distributed in cash.  When looking at an marketable index fund/ ETF, are the funds distributions considered reinvested or delivered in cash.  Thanks.

HnE

 

[wildcat]

If you download historical prices to a spreadsheet & figure returns according to the adjusted close. The adjusted close accounts for dividends.

 

[HnE]

Thanks for the reply.  I am still trying to get it.  Say we have two investors who own the same S&P index fund.  Investor A reinvests the distributions back into the fund.  Investor B takes his distributions in cash.  Which investor tracks the S&P historical performance chart the closest? 

 

[wildcat]

I believe most historical return data for the S&P includes dividends. The one that reinvests assuming no other variables will do better.

 

[HnE]

Thanks!