The All Ordinaries Index, or simply All Ords, is a name you’ll frequently encounter if you’re trading in the Australian stock market. It is a mainstay on financial news sites and investment platforms such as Yahoo Finance Australia and serves as a fundamental benchmark for the performance of Australian stocks.
What Is the All Ordinaries Index?
The All Ordinaries Index (ASX code: XAO) is the oldest index of shares in Australia, created in January 1980. It represents the 500 largest companies listed on the Australian Securities Exchange (ASX), based on market capitalization.
It doesn’t include all companies listed on the ASX, but it covers about 85% of the value of all Australian companies listed on the exchange, making it a broad indicator of market performance. Unlike more targeted indices like the ASX 200, which includes the top 200 stocks, the All Ords offers a more inclusive look at the overall market.
Why Is the All Ords Important?
- Market Sentiment Gauge: Investors often refer to the All Ords to gauge the general direction of the Australian market.
- Historical Reference: Because it has a long history, it provides valuable context for long-term investment analysis.
- Portfolio Benchmarking: Many Australian investors use it to compare their portfolio’s performance against a broader market standard.
Tracking the All Ords on Yahoo Finance
Platforms like Yahoo Finance Australia make it easy to track the All Ordinaries Index in real time. On the site, you can:
- View live updates on the index’s performance.
- Access historical data and interactive charts.
- Track news and analysis related to top All Ords companies.
- Set alerts and create a watchlist that includes the index and its constituent companies.
Yahoo Finance’s user-friendly interface makes it especially appealing for retail investors and those new to the market.
Recent Trends and Performance
As of 2025, the All Ords has seen steady performance with cyclical ups and downs tied to both global and domestic economic conditions. Key sectors influencing the index include:
- Resources and Mining (e.g., BHP, Rio Tinto)
- Financial Services (e.g., Commonwealth Bank, Westpac)
- Healthcare (e.g., CSL Limited)
Global factors like interest rate shifts, commodity prices, and geopolitical tensions continue to impact the index.
How to Invest in the All Ords
While you can’t invest directly in the index, there are a few indirect ways to gain exposure:
- ETFs (Exchange-Traded Funds): Products like the SPDR S&P/ASX 200 ETF (STW) or Vanguard Australian Shares Index ETF (VAS) give you access to a broad range of ASX stocks.
- Managed Funds: Many super funds and managed portfolios track or mirror the performance of indices like the All Ords.
- Direct Stock Investment: By investing in top companies included in the index.