EURO STOXX 50
The EURO STOXX 50 is a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group. As of August 2020, the index is dominated by France (representing 36.4% of all total assets) and Germany (35.2%).[2]
| Foundation | 26 February 1998 |
|---|---|
| Operator | STOXX |
| Constituents | 50 |
| Type | Mega cap |
| Market cap | €1.962 trillion (March 2016)[1] |
| Weighting method | Free-float market capitalization |
| Related indices | STOXX Europe 50 |
| Website | stoxx.com |
According to STOXX, its goal is "to provide a blue-chip representation of Supersector leaders in the Eurozone". It is made up of fifty of the largest and most liquid stocks. The index futures and options on the EURO STOXX 50, traded on Eurex, are among the most liquid products in Europe and the world.
The EURO STOXX 50 was introduced on 26 February 1998. Its composition is reviewed annually in September. The index is available in several currency (EUR, USD, CAD, GBP, JPY) and return (Price, Net Return, Gross Return) variant combinations. Calculation takes place every 15 seconds between 09:00 CET and 18:00 CET for the EUR and USD variants of any return type, while the CAD, GBP and JPY variants are available as end-of-day calculation only (18:00 CET).
The EURO STOXX 50 Index is derived from the 19 EURO STOXX regional Supersector indices and represents the largest super-sector leaders in the Eurozone in terms of free-float market capitalization. The index captures about 60% of the free-float market capitalization of the EURO STOXX Total Market Index (TMI), which in turn covers about 95% of the free-float market capitalization of the represented countries.
The EURO STOXX 50 serves as the basis for single sub-indices such as the EURO STOXX 50 ex Financials, which excludes all companies assigned to the ICB code 8000. It is one of the most liquid indices for the Eurozone: an ideal underlying for financial products or for benchmarking purposes. Additionally, the index serves as an underlying for many strategy indices, such as the EURO STOXX 50 Risk Control Indices. Buffers are used to achieve the fixed number of components and to maintain stability of the indices by reducing index composition changes. Selection methodology ensures a stable and up-to-date index composition. Fast-entry and fast-exit rules ensure the index accurately represents the performance of only the biggest and most liquid stocks.
Development
(end-of-year points)[3]
The following table shows the end-of-year values of the Euro Stoxx 50 index since 1986.[4]
A record closing high of 5,464.43 was recorded on 6 March 2000.
| Year | Year end value |
Change, in points |
Change, in % |
|---|---|---|---|
| 1986 | 900.82 | ||
| 1987 | 648.13 | −252.69 | −28.05 |
| 1988 | 861.36 | 213.23 | 32.90 |
| 1989 | 1098.49 | 237.13 | 27.53 |
| 1990 | 858.72 | −239.77 | −21.83 |
| 1991 | 1000.00 | 141.28 | 16.45 |
| 1992 | 1033.51 | 33.51 | 3.35 |
| 1993 | 1433.34 | 399.83 | 38.69 |
| 1994 | 1320.59 | −112.75 | −7.87 |
| 1995 | 1506.82 | 186.23 | 14.10 |
| 1996 | 1850.32 | 343.50 | 22.80 |
| 1997 | 2531.99 | 681.67 | 36.84 |
| 1998 | 3342.32 | 810.33 | 32.00 |
| 1999 | 4904.46 | 1562.14 | 46.74 |
| 2000 | 4772.39 | −132.07 | −2.69 |
| 2001 | 3806.13 | −966.26 | −20.25 |
| 2002 | 2386.41 | −1419.72 | −37.30 |
| 2003 | 2760.66 | 374.25 | 15.68 |
| 2004 | 2951.24 | 190.58 | 6.90 |
| 2005 | 3578.93 | 627.69 | 21.27 |
| 2006 | 4119.94 | 541.01 | 15.12 |
| 2007 | 4399.72 | 279.78 | 6.79 |
| 2008 | 2451.48 | −1948.24 | −44.28 |
| 2009 | 2966.24 | 514.76 | 21.00 |
| 2010 | 2792.82 | −173.42 | −5.85 |
| 2011 | 2316.55 | −476.27 | −17.05 |
| 2012 | 2635.93 | 319.38 | 13.79 |
| 2013 | 3109.00 | 473.07 | 17.95 |
| 2014 | 3146.43 | 37.43 | 1.20 |
| 2015 | 3267.52 | 121.09 | 3.85 |
| 2016 | 3290.52 | 23.00 | 0.7 |
| 2017 | 3503.96 | 213.44 | 6.47 |
| 2018 | 3001.42 | −502.54 | −14.34 |
| 2019 | 3745.15 | 743.73 | 24.78 |
| 2020 | 3571.59 | −176.88 | −4.72 |
Calculation
The calculation of the indices employ the Laspeyres formula, which measures price changes against a fixed base quantity weight:[5]
where:
- t = Time the index is computed
- n = Number of companies in the index
- pit = Price of company (i) at time (t)
- sit = Number of shares of company (i) at time (t)
- ffit = Free float factor of company (i) at time (t)
- cfit = Weighting cap factor of company (i) at time (t)
- xit = Exchange rate from local currency into index currency for company (i) at time (t)
- Mt = Free-float market capitalization of the index at time (t)
- Dt = Divisor of the index at time (t)
Changes in weights due to corporate actions are distributed proportionally across all index components. The index divisors, which is adjusted to maintain the continuity of the values of the index across changes due to corporate actions, are calculated as follows:
where ΔMCt+1 = The difference between the closing market capitalization of the index and the adjusted closing market capitalization of the index: for companies with corporate actions effective at time (t+1), the free-float market capitalization is calculated with adjusted closing prices, the new number of shares at time (t+1) and the free-float factor at time (t+1) minus the free-float market capitalization calculated with closing prices, number of shares at time (t) and free-float factor at time (t).
Composition
As of May 2018, Euro Stoxx 50 consists of the following companies:[6]
Stocks per country
The following table shows the number of stocks (companies) per country:
| Rank | Country | Stocks |
|---|---|---|
| 1 |  France | 18 |
| 2 |  Germany | 14 |
| 3 |  Spain | 6 |
| 4 |  Netherlands | 6 |
| 5 |  Italy | 3 |
| 6 |  Ireland | 2 |
| 7 | .svg.png.webp){kind=small} Belgium | 1 |
| 8 |  Finland | 1 |
| Total | 50 | |
See also
- STOXX Europe 50 (a similar index not limited to the Eurozone)
- S&P Europe 350
References
- "EURO STOXX 50 website". STOXX. Retrieved 26 March 2016.
- EURO STOXX 50, August 31, 2020
- http://www.boerse.de/historische-kurse/Euro-Stoxx-50/EU0009658145
- "Euro Stoxx 50 Historie | Kurshistorie | Schlusskurse". boerse.de.
- http://www.stoxx.com/download/indices/rulebooks/stoxx_calculation_guide.pdf
- "STOXX Digital | EURO STOXX 50®". www.stoxx.com.
External links
- EURO STOXX 50 page
- EURO STOXX 50 Fact sheet
- STOXX Index Methodology Guide
- Bloomberg page for SX5E:IND
- Yahoo! Finance page for ^STOXX50E
- Euro Stoxx 50 | Index | 965814 | EU0009658145 | Börse Frankfurt (Frankfurt Stock Exchange)
| Markets |
|
|---|---|
| National listing venues | |
| Indices |
|
.png.webp){kind=small}