EURO STOXX 50 explained

EURO STOXX 50 Index
Foundation:26 February 1998
Operator:STOXX
Constituents:50
Cap Level:Mega cap
Mcap:€4.011 trillion (Aug 2023)[1]
Weighting:Free-float market capitalization
Related:STOXX Europe 50

The EURO STOXX 50 is a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group. The index is composed of 50 stocks from 11 countries in the Eurozone.[2]

EURO STOXX 50 represents Eurozone blue-chip companies considered as leaders in their respective sectors.[2] 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.

Contract Specifications[3] !Euro Stoxx 50 (DSX)!
Exchange: EUREX
Sector: Index
Tick Size: 1
Tick Value: 10 EUR
BPV: 10
Denomination: EUR
Decimal Place: 1
The EURO STOXX 50 was introduced on 26 February 1998.

The EURO STOXX 50 Index represents some of the largest companies 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 is one of the most liquid indices for the Eurozone.

Historical performance

EURO STOXX 50 was quoted only starting 1998 but its prices were calculated retroactively back to the year 1986. The base value is 1000 points, referenced on 31 December 1991.[4] The following table shows the end-of-year values of the EURO STOXX 50 index since 1986.[5]

YearYear 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 3745.16 743.73 24.78
2020 3552.64 −192.52 −5.14
2021 4298.41 745.77 20.99
20223793.62−504.79−11.74
20234521.65728.0319.19

Calculation

The calculation of the indices employ the Laspeyres formula, which measures price changes against a fixed base quantity weight:[6]

Index=
t=
\displaystyle
n
\sum
i=1
(pitsitffitcfitxit)
Dt
Mt
Dt

where: vcc:FdDF

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:

Dt+1=Dt

\displaystyle
n
\sum
i=1
(pitsitffitcfitxit)\pm\DeltaMCt+1
\displaystyle
n
\sum
i=1
(pitsitffitcfitxit)

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).

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.

Composition

The composition of EURO STOXX 50 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., the most countries with most companies represented are France (representing 41.8% of all total assets) and Germany (26.5%).

, Euro Stoxx 50 consists of the following companies:[7]

Ticker Main listing Name Corporate form Registered
office
Industry Founded
ADS.DE Aktiengesellschaft Sportwear 1924
ADYEN.AS Naamloze vennootschap Software—Infrastructure 2006
AD.AS Naamloze vennootschap Retail 2016 (1867)
AI.PA Société Anonyme Chemistry 1902
AIR.PA Societas Europaea Aerospace 1970
ALV.DE Societas Europaea Insurance 1890
ABI.BR Société Anonyme/
Naamloze vennootschap
Food and beverage 2008 (1366/1888/1852/1895)
ASML.AS Naamloze vennootschap Technology 1984
CS.PA Société Anonyme Insurance 1816
BAS.DE Societas Europaea Chemistry 1865
BAYN.DE Aktiengesellschaft Chemistry 1863
BBVA.MC Sociedad Anónima Banking 1857
SAN.MC Sociedad Anónima Banking 1857
BMW.DE Aktiengesellschaft Automotive industry 1916
BNP.PA Société Anonyme Banking 2002 (1848/1872)
BN.PA Société Anonyme Food and beverage 1919
DB1.DE Aktiengesellschaft Finance 1992
DHL.DE Aktiengesellschaft Logistics 1995
DTE.DE Aktiengesellschaft Telecommunication 1995
ENEL.MI Società per azioni Electric utility 1962
ENI.MI Società per azioni Petroleum 1953
EL.PA Société anonyme Optical industry 1849
RACE.MI Naamloze vennootschap Automotive 1939
FLTR.L Public limited company Bookmaking 2016
RMS.PA Société Anonyme Luxury 1837
IBE.MC Sociedad Anónima Electric utility 1992 (1907/1944)
ITX.MC Sociedad Anónima Clothing 1985
IFX.DE Aktiengesellschaft Semiconductors 1999
INGA.AS Naamloze vennootschap Banking 1991
ISP.MI Società per azioni Banking 2007 (1563)
KER.PA Société Anonyme Luxury 1963
OR.PA Société Anonyme Personal and household goods 1909
MC.PA Societas Europaea Personal and household goods 1987 (1743 / 1765 / 1854)
MBG.DE Aktiengesellschaft Automotive industry 2007 (1926)
MUV2.DE Aktiengesellschaft Insurance 1880
NOKIA.HE Julkinen osakeyhtiö Telecommunication 1865
NDA-FI.HE Aktiebolag Banking 1820
RI.PA Société Anonyme Alcohol 1975
PRX.AS Naamloze vennootschap Consumer Internet 2019
SAF.PA Société Anonyme Aerospace 2005
SGO.PA Société Anonyme Building materials 1665
SAN.PA Société Anonyme Pharmaceutical industry 2004 (1834/1899/1973)
SAP.DE Societas Europaea Technology 1972
SU.PA Societas Europaea Goods and Services 1836
SIE.DE Aktiengesellschaft Goods and Services 1847
STLAM.MI Euronext Naamloze vennootschap Automotive industry 2021
TTE.PA Societas Europaea Petroleum 1924
DG.PA Société Anonyme Construction and materials 1899
UCG.MI Società per azioni Banking 1998
VOW.DE Aktiengesellschaft Automotive industry 1937

Stocks per country

The following table shows the number of stocks (companies) per country :

RankCountryStocks
117
214
36
45
54
62
71
1
!Total50

Use in the financial industry

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. EURO STOXX 50 is used for as underlying index for other financial products or for performance benchmarking purposes. Additionally, the index serves as an underlying for many strategy indices, such as the EURO STOXX 50 Risk Control Indices.The index is used as an underlying for ETFs and derivative financial instruments such as futures and options.[2]

See also

External links

Notes and References

  1. https://www.stoxx.com/document/Indices/Factsheets/2023/August/SX5GT.pdf EURO STOXX 50
  2. Web site: About EURO STOXX 50 Price EUR. Bloomberg. 5 July 2022 .
  3. Web site: Historical Euro Stoxx 50 Intraday Data (DSX) . 2022-08-31 . PortaraCQG . dmy-all.
  4. Web site: EuroStoxx 50. Markets Insider. 2 June 2018 . 5 July 2022 .
  5. Web site: Euro Stoxx 50 Historie Kurshistorie Schlusskurse . 2024-08-20 . boerse.de . de.
  6. http://www.stoxx.com/download/indices/rulebooks/stoxx_calculation_guide.pdf STOXX Calculation Guide
  7. Web site: STOXX Digital | EURO STOXX 50®. www.stoxx.com.