--- title: "PX-TR: Methodology" description: "PX-TR is maintained by Prague Stock Exchange and covers Czech equity total return benchmark. How it selects and weights its constituents, and what it measures." canonical: https://www.getswoopr.com/stocks/indexes/px-tr/ source: "Swoopr Investment: https://www.getswoopr.com" --- # PX-TR: What It Measures and How It Is Built ## Direct Answer > The PX-TR is a rule-based measurement of Czech equity total return benchmark, maintained by Prague Stock Exchange. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The PX-TR covers Czech equity total return benchmark, within the Czech Republic market. Prague Stock Exchange defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The index name does not state a fixed company count, so the number of constituents follows the eligibility rules rather than a target. ## How constituents are weighted Same composition and weights as the PX, but a dividend index: payments of gross (untaxed) dividends and other incomes, such as capital reductions, are reflected by recalculating the adjustment factor as of the third session before the record date. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion Uses the PX composition: blue chip shares from the Prime and Standard markets with market capitalization above CZK 0.5 billion or average daily volume above CZK 2 million, traded in at least 90% of sessions. A free float adjusted weight above 20% on a cut off date is reduced with the reduction factor. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## When the membership is revised Composition and factors follow the PX: Index Committee meetings on the first trading day after the last session of February, May, August and November, with changes effective on the first session after the third Friday of March, June, September and December. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people The PX TR counts gross dividends, while the sister PX TRnet counts them net of the relevant income tax. The amount used is the approved dividend, or the proposed amount if the record date comes before approval, and differences are corrected later without restating past values. ## References - [Prague Stock Exchange: Prague Stock Exchange, Rules for the PX, PX TR and PX TRnet Indices, version 2.3 of June 2020](https://www.pse.cz/userfiles/related_documents/en/EN-PX-PX-TR-and-PX-TRnet-index-rules.pdf), as published 2020. Every rule described on this page is taken from this document. ## Current PX-TR constituents Prague Stock Exchange publishes and licenses the PX-TR constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [Prague Stock Exchange: official PX-TR page](https://www.pse.cz/en/indices) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Europe indexes](https://www.getswoopr.com/stocks/indexes/europe/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the PX-TR? Prague Stock Exchange maintains the PX-TR and publishes the methodology document that defines its eligibility and weighting rules. ### What does the PX-TR measure? It measures Czech equity total return benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current PX-TR constituents? Prague Stock Exchange publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. 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